8.21.15 - STOCKS & DOLLAR SLIDE, GOLD SHINES!
Gold last traded at $1,159 an ounce. Silver at $15.30 an ounce.
NEWS SUMMARY: U.S. stocks plunged Friday, extending a recent rout, as concerns about China and slowing global growth continued to pressure investor sentiment. Meanwhile, gold prices hit a 6-week high as the U.S. dollar weakened further on China and Fed worries.
Global Stocks Fall Further on China Worries -Wall Street Journal
"A global stock rout intensified Friday on fresh worries about China’s economy. Signs of a sharp slowdown in the world’s second-largest economy have unnerved investors since Beijing surprised markets last week by devaluing its currency. Shares in the U.S., Asia and Europe have tumbled along with commodity prices as investors worry about waning Chinese demand. On Friday, an early gauge of China’s factory activity fell to a six-and-a-half year low in August, heaping further pressure on stocks and commodities after Thursday’s global selloff....Ultralow interest rates have fueled a big rally in stock markets since the financial crisis. On Wednesday, minutes of the Fed’s latest policy meeting showed officials were divided over when to raise rates, with some citing concerns over China’s economy as a reason to hold back."
Dollar weakens on China, receding U.S. rate hike hopes -Reuters
"The U.S. dollar fell across the board on Friday, after weaker-than expected Chinese manufacturing data drove concerns about the global economy, pushing investors toward the perceived safety of the Japanese yen. The dollar fell against the euro and other major currencies on Thursday as bets dwindled that the Federal Reserve next month will raise U.S. interest rates for the first time in nearly a decade." Gold is the anti-dollar. Gold is on a trajectory to overtake the dollar as the rightful center of the currency universe. Are you prepared? If not, please read Mr. Smith's newest special report, What's Next For The Dollar?
Venezuela's currency so worthless people use as napkins -Business Insider
"According to Venezuela's official bolivar-dollar exchange rate, the man using his money as a napkin is wasting about $0.31 (£0.20). But on the black market, the reality is completely different. You can get 676.88 bolivars to the dollar, according to dolartoday.com. That means holding food with a 2 bolivar note costs the holder less than a third of one US cent. The country has a spiraling inflation rate. Official inflation is high enough, at 68.5%, but like the official exchange rate, that paints a much rosier picture than reality. Professor Steve Hanke, who runs the Troubled Currencies Project, a joint program between the Cato Institute and Johns Hopkins University, says in reality inflation is more like 808%. Food is increasingly hard to get hold of, shop shelves are often empty, and the country's social order is deteriorating." If you want a peek into the future of all fiat paper currencies, you need to read The Timeless Truth About Gold & Silver.
Gird for the Worst as Fed Loses Its Grip on Debt -Bloomberg
"What happens when the Federal Reserve loses its stranglehold over debt markets? Investors are finding out. The selloff in corporate bonds is deepening and investors are seeking safety in the longest-dated government debt, which does best when the economy does worst. Defaults are rising as oil tumbles and investors are looking for the best ways to hedge against credit losses. All this comes as the Fed does, well, nothing much. 'The Fed was ready to move, waited too long, and China moved first,' wrote Wells Fargo & Co. analysts led by Richard Gordon on Aug. 18." Yes, the Fed has lost their grip, just as we predicted in In The Biggest Bank Heist in History
The USS Social Security is sinking fast! -MillerOnTheMoney
"Somewhere between 2026 and 2034, hard-working Americans who paid into a pension fund will not get the benefits they are counting on. That is a real problem, not only for the retirees, but also future generations having to make good on promises they did not make. In many cases, their futures were mortgaged long before they were old enough to vote....Savvy Americans understand the problem and will look after their family now and in the future. They have learned to depend on themselves and never count on the government. Most of those promises are made by politicians looking for your vote, who will be long gone before they must make good on them. We must understand our priorities and focus on the task at hand. You can’t say we have not had ample warning - very loud and clear. It’s time to heed the warning and protect your family....While many pundits are declaring the demise of gold, silver and precious metals, having assets that are historical hedges against high inflation is a must."
8.20.15 - WORLD RUSHES TO GOLD'S SAFETY!
Gold last traded at $1,153 an ounce. Silver at $15.53 an ounce.
NEWS SUMMARY: U.S. stocks fell 2% on Thursday as oil prices hit fresh lows and continued uncertainty over the Fed amid data releases. Gold prices shot up over 1.65% on safe haven buying as the dollar drifted lower.
Gold rally could be similar to 1980 -CNBC
"Prices of Gold continued to rally Thursday, rising more than 1 percent to a four-week high as uncertainty over a possible Fed rate hike had investors piling into the safe haven asset. The precious metal is now up more than 6 percent from the recent low hit in late July and some traders think now could be its time to shine....'The is one of the first times in a while that we've seen options traders bet on a rebound,' Mike Khouw, a CNBC contributor, said Wednesday on CNBC's 'Fast Money'....'We don't quite know how this will end', added Khouw. 'But if gold's bear market is similar to the one in the early 1980s, it may still be marked by some significant rebounds.'" Are we headed back to $2,000 an ounce gold? Find out by reading The Timeless Truth About Gold & Silver.
A Flyspeck of Gold -Hugo Salinas Price, Plata
"The idea of a 'Dollar price of gold' is a mistaken idea, although universally shared. Just as mistaken as the idea that the Sun revolves around the Earth. Gold is the most highly demanded of all things in this world. Every single gram of gold in the world is owned by someone - either directly as personal property, or through legal participation in Funds owning gold....There can never be an over-supply of gold, and only gold enjoys such demand. Gold is the Sun at the center of the monetary universe, and all other currencies are sailing around it....The true concept is the price of the dollar in gold. How many grams of gold will purchase a dollar? The gram weight of gold which is needed to purchase a dollar is the price of the dollar....The dollar, like all fiat currencies through the ages, is on its way to meeting its doom: the moment when no one will want to spend even a flyspeck of gold on purchasing a dollar." Mr. Price is right on the money! The U.S. dollar has morphed from a promise to pay a specific weight measurement of gold or silver into a nebulous promise to pay an unmeasurable weight of debt, as we explain in The Golden Numeraire.
United States Drops In Overall Freedom Ranking -DailyCaller
"A new report on the freedom of countries around the world ranks the United States 20th, putting countries like Chile and the United Kingdom ahead of the U.S. Last year, the U.S. was ranked 17th, but a steady decline of economic freedom and 'rule of law' has dropped the level of freedom, according to the Cato Institute, Fraser Institute and the Swiss Liberales Institute, which created the study together....Co-author of the report Ian Vasquez told The Daily Caller News Foundation that the steady growth of government and increased regulations of business and labor contribute to the U.S. low rating. 'Since the year 2000, the U.S. has been on a decline in terms of economic freedom,' Vasquez told TheDCNF."
IMF: China must wait to join exclusive currency club -AP
"The currency club China wants to join is known as the IMF's Special Drawing Rights basket. This is a virtual currency the IMF can use for emergency loans and IMF member countries can use to bolster their own reserves in times of crisis. The IMF's board voted to leave unchanged until Sept. 30, 2016 a basket of currencies used in IMF operations. China, world's second-biggest economy, had wanted the IMF to include its currency, the yuan, in the basket along with the U.S. dollar, euro, British pound and Japanese yen starting Jan. 1." For more details read Mr. Smith's newest special report, What's Next For The Dollar?
8.19.15 - WHY GOLD IS BUCKING COMMODITY ROUT
Gold last traded at $1,127 an ounce. Silver at $15.17 an ounce.
NEWS SUMMARY: U.S. stocks traded down Wednesday amid Asian market volatility, falling oil prices and the release of the Fed's July meeting minutes. Precious metal prices rose sharply on safe haven buying. The dollar fell after the Fed said they might not be ready to raise interest rates.
Gold Jumps as Equity Retreat Spurs Haven Demand -Bloomberg
"Gold futures advanced most in a week as a retreat in equities and emerging-market currencies revived demand for the metal as a haven....Bullion on Friday capped the biggest weekly gain since mid-June after China unexpectedly devalued its currency, shaking up markets and boosting the appeal of haven assets....'The selloff in equity markets reflects economic concern, which is supportive of gold,' James Cordier, the founder of Optionsellers.com in Tampa, Florida, said in a telephone interview. 'With so many problems globally, people think the Fed will have to wait to raise rates.'" Get up to speed fast on the best gold buying opportunity of the year by reading The Timeless Truth About Gold & Silver.
First Time In Six Years Gold Is "Undervalued" Says BofA -ZeroHedge
"With hedge funds net short for the first time ever, and Commercial Hedgers are holding the lowest net short position in gold futures since the launch of the gold bull market in 2001, we thought it interesting that - for the first time since 2009, BofAML's fund managers' survey finds Gold is 'undervalued.'....This is what happened the last time gold saw a 'low' net long position." For over 30 years Swiss America has told the public the full story: Gold is neither a commodity nor an investment - it is the world's most trustworthy store of value, time and labor. This explains why gold prices are rising while oil and other commodity prices are falling. Gold is much more than "just another commodity" as former Fed Chair Ben Bernanke once said. Gold is in fact the ultimate, worldwide "numeraire" which serves as the most fundamental form of money, which today is temporarily undervalued.
Iran Accord, War and the Doomed Dollar -Daily Reckoning
"US President Barack Obama has given an extraordinary ultimatum to the Republican-controlled Congress, arguing that they must not block the nuclear accord with Iran. It’s either 'deal or war,' he says. But what could really be behind Obama’s dire warning of 'deal or war' is another scenario - the collapse of the US dollar, and with that the implosion of the US economy....Doug Casey, a top American investment analyst, last week warned that the woeful state of the US economy means that the dollar is teetering on the brink of a long-overdue crash....He added that the crash will also presage a collapse in the American banking system which is carrying trillions of dollars of toxic debt derivatives, at levels much greater than when the system crashed in 2007-08." For more details read Mr. Smith's newest special report, What's Next For The Dollar?
Obama, the Left downsizing the American Dream -Orange County Register
"President Obama’s great accomplishment, arguably, has been to spur the evolution of a society that formerly rested on individual and familial aspiration, and turn it into a more regulated and centralized regime focused on broader social and environmental concerns....Three ideas prevail in shaping today’s new politics: sexual liberation, racial redress and environmental determinism. The first notion has made rapid progress, in that gay marriage now is, rightfully, legal, and women are making steady gains across the employment spectrum....The second major thrust of the reconstituted American Dream is the imposition of a regime of permanent racial redress. In contrast to assuring equal rights, the new drive is to guarantee similar results....Worse still, the third major lodestone of current reigning ideology - environmentalism - increasingly tends to tilt against broad-based economic growth. The celebration of economic stagnation is accepted openly among European greens who support an agenda of 'degrowth.' It is also reflected in American calls for 'de-development,' a phrase employed by President Obama’s Science Adviser John Holdren."
8.18.15 - FED POLICY FAILURES EXPOSED
Gold last traded at $1,116 an ounce. Silver at $14.79 an ounce.
NEWS SUMMARY: U.S. stocks closed lower Tuesday on mixed economic data. Shanghai stocks fell 6% amid renewed worries the Chinese government may further devalue the yuan. Meanwhile, precious metal prices steadied despite a stronger U.S. dollar.
No evidence Fed's money printing boosted economy -CNBC
"In a white paper dissecting the U.S. central bank's actions to stem the financial crisis in 2008 and 2009, Stephen D. Williamson, vice president of the St. Louis Fed, finds fault with three key policy tenets. Specifically, he believes the zero interest rates in place since 2008 that were designed to spark good inflation actually have resulted in just the opposite....'With the nominal interest rate at zero for a long period of time, inflation is low, and the central banker reasons that maintaining ZIRP will eventually increase the inflation rate. But this never happens and, as long as the central banker adheres to a sufficiently aggressive Taylor rule, ZIRP will continue forever, and the central bank will fall short of its inflation target indefinitely,' Williamson said." In The Biggest Bank Heist in History Craig Smith and Lowell Ponte explain why The Fed's zero interest policy and quantitative easing are destined to fail everyone, except Progressive politicians and mega-banks.
China crisis could crash down on us all -Telegraph
"If the yuan dropped very sharply, inflation could soar, leading Beijing to raise interest rates, which would slow the country’s economy - which at the moment seems unthinkable. Having grown 9.8% a year since the late-Seventies, the Chinese economy now outstrips America on a purchasing power parity basis....This autumn, the IMF publishes its review of the Special Drawing Rights (SDRs), the official currency basket used by central banks everywhere to denominate their reserves. Inclusion of the yuan, if matched by a loosening of capital controls by Beijing, would mark China’s full integration into the global financial system. More hard-nosed observers, myself included, will judge that Beijing, while it has an eye on the IMF’s decision on SDRs, is firing back a 'currency war' salvo." In Swiss America's latest FREE report, What's Next For The Dollar?, Craig Smith explains why the politics of replacing the dollar as the world's reserve currency will greatly impact the financial markets, the banking world and your dollar-denominated savings.
U.S. Lacks Ammo for Next Economic Crisis -Wall Street Journal
"As the U.S. economic expansion ages and clouds gather overseas, policy makers worry about recession. The U.S. generally injects cash into the economy through interest-rate cuts, tax cuts or ramped-up federal spending. Those tools could be hard to employ when the next dip comes: Interest rates are near zero, and fiscal stimulus plans could be hampered by high levels of government debt and the prospect of growing budget deficits to cover entitlement spending on retired baby boomers....'The world economy is like an ocean liner without lifeboats,' economists at HSBC Bank wrote in a recent research note."
GDP won't accelerate, so why hike rates: Former Fed gov -CNBC
"The Federal Reserve may have missed its window for an interest rate hike, former Fed Gov. Larry Lindsey said Monday, a month before the central bank's crucial September monetary policy meeting....'Looking at the Fed's own behavior, I'd bet they're going to take a pass in September,' predicted Lindsey, who also served as director of the National Economic Council for President George W. Bush. 'I think [the Fed] could have done it painlessly. There's no cause and effect here,' he said. 'I think they're running the risk of raising and then being embarrassed by a slowdown.'"
8.17.15 - WHAT'S NEXT FOR THE DOLLAR?
Gold last traded at $1,118 an ounce. Silver at $15.29 an ounce.
NEWS SUMMARY: U.S. stocks shrugged off pessimism to push higher Monday as upbeat housing confidence outweighed a dismal manufacturing report. Precious metal prices rose on safe-haven buying despite a stronger dollar.
Doomsday Clock: One minute to midnight -Telegraph
"China currency devaluation signals endgame leaving equity markets free to collapse under the weight of impossible expectations. When the banking crisis crippled global markets seven years ago, central bankers stepped in as lenders of last resort. Profligate private-sector loans were moved on to the public-sector balance sheet and vast money-printing gave the global economy room to heal. Time is now rapidly running out. From China to Brazil, the central banks have lost control and at the same time the global economy is grinding to a halt. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations....As central banks run out of silver bullets then, credit markets are desperately seeking to reprice risk."
What's Next For the Dollar? - Swiss America
"Today the U.S. dollar is the tallest midget in the world of paper currencies and is set for a fall," writes Swiss America Chairman Craig R. Smith in a new Special Report. Last week Secretary of State John Kerry warned the world about a potential dollar crash on the exact same day the Chinese announced a government-engineered depreciation of their Yuan currency - which sent shock waves throughout the global financial markets. In recent years China has been quietly sidestepping the dollar by opening currency swap lines with several Asian countries. The U.S. dollar has been the world's reserve currency since 1921, but its days may be numbered. The only form of world currency which has lasted for centuries is gold. Gold is the world's ultimate currency because it is scarce, it provides instant liquidity and maintains a trustworthy store of value over time.
Why gas prices are rising despite oil's plunge -CNBC
"Crude oil fell about 1 percent on Monday, trading near six-year lows. However, the national gasoline price average has increased to $2.67 from $2.59 one week ago, according to AAA's Fuel Gauge Report. Andy Lipow of Lipow Oil Associates said the rise in gas prices is driven by California and the greater Chicago area, where major oil refineries are having trouble processing crude oil into gasoline for the consumer. BP recently shut down its largest crude-oil processing unit in the Midwest after heavy damage from a malfunction. Lipow said California gas prices are still feeling the blows from an explosion in February at an Exxon Mobil refinery in the Los Angeles area."
8.14.15 - TIME TO "SELL" DOLLARS NOW
Gold last traded at $1,112 an ounce. Silver at $15.21 an ounce.
NEWS SUMMARY: U.S. stocks ended slightly higher Friday as investors mulled over rising inflation, falling consumer sentiment data and how both may impact Fed interest rate policy in September. Meanwhile the U.S. dollar inched upward. Precious metals ended the week with a 1.5% gain, the highest level in three weeks.
Welcome To The Revenue Recession -Zero Hedge
"The 'Revenue Recession' is alive and well, at least when it comes to the 30 companies of the Dow Jones Industrial Average....Overall, the lack of revenue growth combined with full equity valuations (unless you think +17x is cheap) is all you need to know about the current market churn... and why it will likely continue....Until we see the U.S. economy accelerate and/or the dollar weaken and/or oil prices stabilize, the chance that investors will pay even higher multiples for stagnant earnings appears remote. That's a recipe for more volatility - potentially a lot more."
History Shows Time to Sell Dollar Is Now -Bloomberg
"Anyone looking for the dollar to surge after the Federal Reserve lifts interest rates has a short memory. The U.S. currency strengthened an average of almost 9 percent during the six to nine months prior to the past three rate-rise cycles. After that, it's been a downhill ride, with the six-month drop averaging about 6 percent....'The assumption that the dollar has to go up as the Fed tightens is not borne out by history,' David Kelly, chief global strategist at JPMorgan Chase & Co.'s JPMorgan Funds unit, said in a phone interview. 'It does tend to go up in advance of an actual rate hike, but it's one of those cases where people buy the rumor and sell the fact.'....The dollar fell 9.3 percent in the six months following 2004's first rate increase, even as the Fed tightened another 100 basis points, according to the Intercontinental Exchange Inc.'s U.S. Dollar Index, which tracks the currency against six major peers." What would a crashing dollar mean to your portfolio and savings? Find out by reading The Timeless Truth About Gold & Silver.
John Kerry: U.S. Dollar Could Lose World Reserve Status -RealClearPolitics
"Speaking with Reuters on Tuesday, Secretary of State John Kerry said that if Congress rejects the Iran nuclear deal, 'that is a recipe, very quickly, my friends, businesspeople here, for the American dollar to cease to be the reserve currency of the world, which is already bubbling out there.'....Is Kerry setting the ground work for blaming Congressional Republicans for this calamatous possibility that is 'already bubbling out there?'" The answer is; quite possibly. How else can you explain a Secretary of State talking about economic issues as important as the dollar's potentially demise unless Congress passes a lousy Iran nuclear deal? More on this topic Monday.
Gold's loud message to stock bulls -Marketwatch
"I know, I know. Gold is a controversial metal. Some people hate it as an investment because it provides no income, and is a "relic of the past." Some people love it, arguing it is the safest form of currency in the world with historical relevance....So let us look at gold not from an emotional side, but rather from a signaling one....Focus not on gold as an investment, and not on gold as a trade. Focus on gold as a messenger of information. Right now, the message for the stock market isn't positive. The question is simply when the market will begin to act on it. Will you?"
8.13.15 - WILL CHINA WIN THE CURRENCY WAR?
Gold last traded at $1,115 an ounce. Silver at $15.40 an ounce.
NEWS SUMMARY: U.S. stocks cautiously rose Thursday in choppy trading amid upbeat economic data and Chinese promises of currency stability. Meanwhile, the U.S. dollar rebounded slightly from its dramatic fall on Wednesday as precious metal prices eased back on speculative profit-taking.
Economists Expect Fed Liftoff in September -Wall Street Journal
"About 82% of economists surveyed Friday through Tuesday by The Wall Street Journal said the Fed’s first rate increase will come in September, versus 13% who said the central bank will wait until December....Only one of the 60 business and academic economists who offered a prediction this month said the Fed would wait until 2016 to start raising rates." In The Biggest Bank Heist in History Craig Smith and Lowell Ponte explain why the Fed is quite likely bluffing on raising interest rates hikes in 2015.
China efforts to slow yuan fall -Reuters
"The People's Bank of China (PBOC) said there was no basis for more yuan depreciation in light of strong economic fundamentals, even though the yuan dropped for the third straight day. Still, traders remained cautious. Sources told Reuters some powerful voices in the government were pushing for an even deeper devaluation to help China's struggling exporters." In DON'T BANK ON IT!, (page 116) Craig Smith and Lowell Ponte write, "As Karl Marx and Friedrich Engels wrote in 1848 in The Communist Manifesto, one of the 10 best ways to destroy capitalism is for government to seize power over all lending and credit." China's central bankers along with the U.S. Fed are attempting to control lending, credit and the free market. Both will ultimately fail.
China risks global chaos of currency devaluation -Telegraph
"If China really is trying to drive down its currency in any meaningful way to gain trade advantage, the world faces an extremely dangerous moment. Such desperate behavior would send a deflationary shock through a global economy already reeling from near recession earlier this year, and would risk a repeat of East Asia's currency crisis in 1998 on a larger planetary scale....'The world economy is sailing across the ocean without any lifeboats to use in case of emergency,' said Stephen King from HSBC in a haunting report in May....The Communist Party has not yet run out of stimulus and is clearly deploying the state banking system to engineer yet another mini-cycle right now."
Voter anger fuels outsider candidates -Washington Post
"The surging candidacies of Donald Trump and Bernie Sanders are fueled by people’s anger with the status quo and desire for authenticity in political leaders....Carson’s and Fiorina’s stock has risen after last week’s first primary debate, as has that of Sen. Ted Cruz (Tex.), who, despite a career in politics, has positioned himself firmly as antiestablishment. Post-debate polls show these candidates gaining ground. In Iowa, a CNN survey released Wednesday shows Trump leading with 22 percent and Carson in second, with 14 percent. Wisconsin Gov. Scott Walker, who had been the Iowa front-runner, was third, with 9 percent, followed by Cruz and Fiorina, with 8 percent and 7 percent, respectively."
Fiorina's Compassionate Conservative Economics -Marketwatch
"Businesswoman Carly Fiorina was the hands-down winner of the JV debate, an audience-free Q&A with the seven candidates who didn’t make the top-10 cut. Fiorina was poised, knowledgeable and precise in her responses....On taxes, Fiorina would lower every rate, close every loophole - maybe retain a few that benefit the middle class - and shrink the 75,000-page U.S. tax code to three pages....Probably the most controversial statement Fiorina has made on the economy ... is that progressive policies contribute to income inequality....Now that she’s impressed the public with her debate performance, Fiorina is in a position to demonstrate that conservatives are compassionate, that their opposition to government programs that have failed those they were intended to help is not a sign of indifference."
8.12.15 - CHINA DEFLATES EVERYTHING BUT GOLD
Gold last traded at $1,123 an ounce. Silver at $15.48 an ounce.
NEWS SUMMARY: The global stock market sell-off continued Wednesday as China further devalued its currency, the Yuan. Meanwhile, the U.S. dollar fell over 1% which helped propel precious metal prices to 3-week highs.
China triggers financial rout -MarketWatch
"So much for that 'one-time correction.' The People’s Bank of China let the yuan drop again overnight, fixing the currency 1.6% below Tuesday’s close, following the 1.9% devaluation heard around the world a day ago....Deutsche Bank, for one, is predicting the yuan is overvalued by around 10%, so if the yuan continues to weaken, things could yet get a lot darker for markets. And stocks aren’t dealing well with the new China reality they’ve seen so far."
China's No-Win Currency War -Fox Business
Neil Cavuto discusses with author and Swiss America Chairman Craig Smith why economic manipulation by government simply does not work. "The government can mess up a one-piece puzzle," says Smith, "and it doesn't matter which government it is!". The Chinese Yuan has fallen 3.5% in the last two days as the Chinese government is attempting to manipulate the international currency markets to overcome their economic slowdown and stock market decline. "This will backfire on the Chinese. I don't believe the drop in the Yuan is over yet ... we are in a full-blown currency war and it's going to get worse," says Mr. Smith. Read Craig Smith's latest research report, THE SECRET WAR, which explains why, under threat of regulatory punishment, banks must now spy on you for the government.
Gold & Silver Surge As Dollar Dumps -ZeroHedge
"Just 3 weeks after the world could not purge itself fast enough of 'pet rocks', Gold is pushing to one-month highs this morning (at $1120) and Silver just broke a key technical level at its 50-day moving average as USD weakness and global turmoil have seen Precious metals gain for the last few days." Find out why precious metals have likely bottomed for the year and could rebound dramatically in the next few months by reading The Timeless Truth About Gold & Silver.
Dollar falls after China moves cast doubt on Fed rate hike -CNBC
"The U.S. dollar fell on Wednesday to its lowest in about a month against a basket of major currencies, on doubts over whether the U.S. Federal Reserve will raise interest rates in September given China's devaluation of the yuan. 'China is still a big unknown, and the market is pricing in the worst,' said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York. 'Many people in the market think that there's less chance of a September hike, and that's one of the factors that has helped lift the euro.'"
The Fiat Yuan -New York Sun
"In China, in any event, it has disclosed a bubble in stocks and certain other assets that has crested in recent years. What this adds up to, according to a wire from David Malpass, one of the fastest and shrewdest economists on the beat, is a 'de-linking' of the yuan and the dollar. He reckons that the Chinese communists are 'laying the groundwork for a yuan bloc and closer relationships with other Asian currencies.' By our lights this is but another consequence of the failure of the Congress to exercise its constitutional power to coin money and regulate the value thereof and of foreign coin and to fix the standard of weights and measures....Why should the Chinese comrades link their yuan to the dollar if the dollar is linked merely to Janet Yellen’s Ph.D.? That phrase is but a facet of what James Grant likes to call the Ph.D. standard, meaning a dollar whose value is established by a group of economists credentialed with graduate degrees in economics, rather than by reference to classical specie."
8.11.15 - CURRENCY WARS: A RACE TO THE BOTTOM
Gold last traded at $1,107 an ounce. Silver at $15.28 an ounce.
NEWS SUMMARY: Stock and commodity prices fell sharply worldwide on Tuesday after a surprise 2% devaluation of the Chinese currency. Meanwhile, the news lifted the U.S. dollar index and precious metal prices.
China Devalues Its Currency on Economic Slowdown Worries -New York Times
"As China contends with an economic slowdown and a stock market slump, the authorities on Tuesday sharply devalued the country’s currency, the renminbi, a move that could raise geopolitical tensions and weigh on growth elsewhere. China’s abrupt devaluation is the clearest sign yet of mounting concern in Beijing that the country could fall short of its goal of roughly 7 percent economic growth this year....China’s central bank 'has finally thrown in the towel on supporting the renminbi,' said Eswar S. Prasad, a professor of economics at Cornell University."
India, Russia And Thailand Prepare For Currency War -ZeroHedge
"We give Russia, Thailand and India (as well as the rest of the EM countries, actually make that all countries, the US included) at least a few days (hours may suffice) before they all realize that in a beggar-thy-neighbor global currency war, where the ZIRP (or NIRP) liquidity trap is already stalking at least half of the entire world, there really is no choice....Expect a dramatic surge in interest rate cuts over the next several weeks as the rest of the world realizes this is not some bad dream and responds, and the tit-for-tat FX defection regime (also known elsewhere as 'war') goes thermonuclear."
Will China Play The 'Gold Card'? -Hugo Salinas Price, Plata
"The thrust of the article is that China, at some point, will have to revalue gold in China; which means, in other words, that China will decide to devalue the Yuan against gold....The only way that the US might counter the Chinese move, would be to revalue gold in Dollars; which is to say, the US would have to effect a corresponding devaluation of the Dollar against gold, to nullify the effect of the Chinese devaluation of the Yuan against gold....When might this happen? The world economy is going from bad to worse by the day. The Chinese may opt for this measure out of sheer desperation, and it may be a reality soon. I have the sensation that things are falling apart around the world at an increasing rate of speed. Perhaps China will move this Fall?" The time to move yourself onto a personal gold standard is now, while prices are still near 5-year lows. Call your Swiss America representative at 800-289-2646 to discuss The Timeless Truth About Gold & Silver.
AS SOCIAL SECURITY TURNS 80, ITS DAYS MAY BE NUMBERED, WARN EXPERTS - PRBuzz
"Social Security was signed into law on August 14, 1935, by President Franklin Delano Roosevelt. Friday, August 14, 2015 is this huge government program’s 80th birthday. Today Social Security and its related benefit programs Medicare and Medicaid are running short of money - and are in real trouble. Social Security Disability Insurance (SSDI) is expected to run out of money in 2016. President Barack Obama’s administration relaxed its qualifications, and SSDI beneficiaries increased by 50 percent, to more than 10 million. This is almost as many as have full-time jobs in all of manufacturing. In their latest book, DON'T BANK ON IT!, Craig Smith and Lowell Ponte explain why Social Security may not be there for a large share of today’s workers - but could soon demand that they pay 25 percent or more of their income in taxes to provide benefits for Baby Boomers." Discover 12 Shocking Facts About Social Security
8.10.15 - FEDSPEAK LIFTS STOCKS & GOLD
Gold last traded at $1,104 an ounce. Silver at $15.29 an ounce.
NEWS SUMMARY: U.S. stocks rallied Monday on speculation the Fed will hold off on interest rate hikes until consumer inflation rises faster. Meanwhile, the prospect of a delayed rate hike sent the U.S. dollar lower and precious metal prices higher.
Inflation Skepticism Sends Wall Street Higher -Fox Business
"U.S. equity markets surged after comments from the Fed's No. 2 official that inflation continues to run below the central bank's 2% objective. On Bloomberg TV, Federal Reserve Vice Chairman Stanley Fischer said the labor market has reached 'nearly full employment' but with 'very low inflation.' While he didn't predict when the central bank is most likely to hike rates, he did say 'the concern about the situation is not to move before we see inflation as well as employment returning to more normal levels.'" In DON'T BANK ON IT!, Craig Smith and Lowell Ponte predict the trillions of dollars in Fed stimulus will ultimately cause runaway inflation.
Gold Rebounds Near Three-Week High -Wall Street Journal
"Gold prices rose to a near three-week high Monday, after a Federal Reserve member said the central bank won’t raise interest rates until inflation has returned to normal. 'Traders believe the Fed is giving themselves an excuse for not raising rates in September, and that’s a positive for gold,' said James Cordier, president at Optionsellers.com....A weakening dollar also supported gold prices, which are denominated in the U.S. currency and become more expensive for foreign buyers when the buck falls." Discover why every American needs to own physical gold regardless of the price by reading The Timeless Truth About Gold & Silver.
'Responsible banking' law ruled unconstitutional -Reuters
"New York City's 'responsible banking' law, which called for banks holding the city's over $6 billion in deposits to document how well they meet the needs of low-income neighborhoods, is unconstitutional, a U.S. federal judge has ruled. In a 71-page decision made public on Monday, U.S. District Judge Katherine Polk Failla said the 2012 law illegally conflicts with both federal and state statutes that regulate banks. 'While the animating concerns of the City Council are valid, the means by which it sought to harness banks to redress those concerns intrudes on the province of the federal and state governments,' Failla wrote." In The Biggest Bank Heist in History Craig Smith and Lowell Ponte explain how simple it is to become your own banker by hedging bank deposits with real, tangible assets that are held outside of the banking system.
The Advent of Local Artisanal Cash -New York Times
"As Bitcoin, PayPal and other electronic forms of payment grow in popularity in the global economy, cash in a growing number of places - not only Bristol and Brixton, but also Amsterdam; Ithaca, N.Y.; and elsewhere - is becoming quite literally an artisanal object. In England, a £10 note in Brixton, designed by Charlie Waterhouse and Clive Paul Russell, honors David Bowie. Many of the new alternative currencies have the look and feel of the regular legal tender accepted at such places. Most include anticounterfeiting measures like holograms and serial numbers....'If you use a local currency, you keep the money local, and that has a 'lifts all boats' vibe to it,' said David Wolman, the author of The End of Money. 'When some people hold a bank note, it makes them furious about fiat money and the debt,' Mr. Wolman said, 'but for others, those symbols embedded in that paper mean a lot - the note conjures feelings of togetherness or nationalism - and the state wants you to have that feeling.'....Perhaps these smaller, more attractive artisanal paper notes are merely last bursts of glory before it disappears entirely."
8.7.15 - AMERICA: FROM GO-GO TO SO-SO
Gold last traded at $1,094 an ounce. Silver at $14.93 an ounce.
NEWS SUMMARY: U.S. stocks traded lower Friday amid falling oil prices and a mediocre July employment report. Meanwhile, precious metal prices rose on safe haven buying.
GOP Debate: The Morning After -Fox News
"The only thing wider than the Republican field this morning is the range of pundit scorecards over who won last night's Fox News debates in Cleveland - though most analysts seem to agree that Carly Fiorina dominated the early debate, gaining much-needed name recognition via social media. Today and tomorrow, many of last night's debaters are in Atlanta for the Red State Gathering, trying to capitalize on their performance." The polls say Donald Trump "won" the debate last night, perhaps due to the public perception of his economic expertise coupled with his flamboyant dressing-down of career politicians from both parties. However, Fox News may have been the biggest winner last night, scoring a record-breaking 24 million viewers.
Go-go economy becomes so-so economy -Marketwatch
"Millions of Americans who want a full-time job still can’t find still one. Worker paychecks are barely keeping ahead of inflation. And governments at all levels are struggling to prevent future costs from spiraling out of control. All of these ailments can be traced to one malady: slow economic growth....The U.S. is in a straitjacket. Sure, the economy has been growing steadily at a 2% clip since a recovery began in mid-2009. But the U.S. is expanding well below its historic growth rate of 3.3%. And it hasn’t topped the 3% mark in a decade - the longest barren stretch in modern times." In The Biggest Bank Heist in History Craig Smith and Lowell Ponte explain why near zero interest rates are to blame for near zero growth after subtracting inflation.
Dollar has peaked, here comes China: Economist -CNBC
"The dollar's appreciation has 'peaked,' the U.S. economy is 'doing nothing' and China will soon be vying with the country on the global stage, an economist has told CNBC....'We're having a perfect storm for the dollar,' Steen Jakobsen, the chief economist at Danish investment bank Saxo Bank, told CNBC. The greenback has rallied 20 percent against a basket of leading currencies since the beginning of 2014....He predicts that China's foreign exchange reserves of more than $3 trillion will start to be invested. With a sizeable chunk of China's reserves being held in dollar-denominated assets, he added that this investment would be to the detriment of the dollar and U.S. bond markets." In DON'T BANK ON IT!, Craig Smith and Lowell Ponte predict the trillions of dollars in Fed stimulus will turn out to be 'anti-stimulus,' causing huge economic distortions and, ultimately, high inflation.
The New American Dream -Forbes
"The American Dream, as articulated by James Truslow Adams and others, has always been in its essence about working hard in order to build a better life. But for the past few generations, success in achieving the American Dream has been measured far too much in terms of home-ownership and career stability....Forget ownership and stability: The new American Dream promises flexibility and adventure and the return of a certain pioneer spirit. For a person still early in her career, it means she can feel great about her future … if she can make peace with not having some of the goodies her peers have or her parents and grandparents had."
5 Nations Still Buying Gold for Their Central Banks -247WallSt
"It is no secret that gold has been pounded in recent weeks....What has been interesting to see is that a handful of nations are still adding to their gold reserves. After all, gold reserves are viewed as being crucial to actually putting in a real value that aims to support a nation’s currency. The decline in the price of gold has gotten even worse since the end of June, but five central banks were buyers of gold in the first half of 2015. New data released by the World Gold Council (WGC) shows central bank purchases and holdings for the month of August. 24/7 Wall St. reviewed the data and there were really only five nations that added handily to their gold reserves in the first half of 2015. These were China and Russia for the lion’s share, followed by Kazakhstan, Mongolia and Jordan." Wise investors (like central banks) are looking beyond the temporary gold price weakness to see the reality that summertime is historically the best season to buy precious metals near their annual price lows. Read more in The Timeless Truth About Gold & Silver.
8.6.15 - DOLLAR RIPE FOR A FALL
Gold last traded at $1,090 an ounce. Silver at $14.68 an ounce.
NEWS SUMMARY: U.S. stocks fell again Thursday as investors dealt with earnings disappointment and the continued decline in oil prices, ahead of Friday's key employment report. Meanwhile, precious metal prices rose on a weaker U.S. dollar.
Atlanta Fed Sees Q3 Growth At 1% -Zero Hedge
"The Atlanta Fed's Q1 and Q2 GDP forecasts were virtually spot on with what the BEA ultimately reported. Which is why if its accuracy persists, not only the Fed, but Wall Street strategists suddenly have a very big headache on their hands. Moments ago, the Atlanta Fed just released its much anticipated first estimate for Q3 GDP. It was a doozy, at just 1.0%, or more than 2% below the consensus sellside estimate. If this is confirmed, not only are all rate hike bets off, but one may as well start the countdown to the recession, and more importantly, QE4." As discussed in The Biggest Bank Heist in History, Craig Smith and Lowell Ponte do not expect an interest rate hike this year and argue more stimulus may be soon proposed by the Fed.
It's The Dollar, Stupid -Market Anthropology
"From our perspective - and represented by the Fed's arduous task of administrating policy from ZIRP and within the trough of the long-term yield cycle, the conditions in the economy that were reflected in the markets of the 70's, 80's and 90's - are not remotely similar with today or have the potential reach and trend capacity that was fundamentally set in motion and sustained by the rise and fall in yields, from their secular icarus heights of the early 1980's....Moreover, from a performance point-of-view, the magnitude and pace of gains over the past year is in fact rare and more representative of culminating blowoff extremes - rather than the early headwaters of a longer trend....Although the dollar appears to be testing those highs this summer, we maintain our expectations that similar to the relative performance extreme in longer-term yields going into 2014, momentum in the dollar will once again roll-over and ultimately test the bottom of its long-term range." In today's corrupt world of floating currency values it has become impossible to identify the true value of almost every other asset. The U.S. dollar has morphed from a promise to pay a specific weight measurement of gold or silver into a nebulous promise to pay an unmeasurable weight of debt. Our economy and money system, once a solid "gold-based" monetary system, has gradually become a politically "faith-based" system. Read more...
Wages At Center of Rate Hike Drama -Fox Business
"No one seems to know why workers’ paychecks aren’t getting much bigger even as the economy generates lots of jobs each month and the unemployment rate has fallen to its lowest level in seven years....Analysts are predicting the U.S. added 237,000 new jobs last month, up from 223,000 a month earlier, and that the unemployment rate will dip to 5.2%, down from 5.3% in June....Stubbornly weak wage growth has emerged as a central issue for Federal Reserve policy makers as they mull the timing of the first rate hike in nearly a decade."
Greece's banks are dying, and fast -Washington Post
"Greece is finding out that you can't have an economy without banks, but you can't have banks without an economy, either. Or at least one where businesses aren't allowed to buy the things they need to stay in business....It's only a slight exaggeration to say that this has made Greece go from having not much of an economy to having not one at all. Greek companies haven't been able to pay foreign suppliers since they can't send money out of the country, so their factories have run out of supplies. Everything has come to a standstill....Greece's Purchasing Mangers Index, which measures manufacturing activity, just collapsed from a sickly 46.9 to a deathly 30.2." To discover the most likely outcome to the ongoing Greek debt and banking crisis read THE GREEK SHOWDOWN.
America Deserves a Servant Leader -Howard Schultz, New York Times
"The values of servant leadership - putting others first and leading from the heart - need to emerge from every corner of American life, including the business community....Despite the encouragement of others, I have no intention of entering the presidential fray. I’m not done serving at Starbucks....Americans who are tired of politics as usual should demand a clear answer to a simple question from every candidate: What will you do to unite all of us?"
8.5.15 - THE SECRET OF WELFARE STATISTS
Gold last traded at $1,085 an ounce. Silver at $14.55 an ounce.
NEWS SUMMARY: U.S. stocks inched higher Wednesday following mixed economic data showing job weakness, but service-sector growth strength. Meanwhile, precious metal prices steadied as the dollar zig-zagged lower.
China knocking on the reserve-currency door -The Economist
"Now China, eager to make the yuan go global, has placed SDRs in the spotlight. The International Monetary Fund, which manages the SDRs, is conducting a five-yearly review of the basket of currencies that form its value. China wants it to bring the yuan into the basket. That would be a big decision, meaning that the IMF has in effect recognized the yuan as a reserve currency, despite China’s extensive capital controls. Two criteria determine whether a currency can be part of the SDR. Its issuing country must be a major exporter, and the currency must be freely usable. No one disputes that China meets the first criterion....The second criterion is the tricky one. If freely usable is understood as fully convertible, the yuan would not make the grade....But, as the IMF explains in its paper, freely usable means something else. It refers to whether a currency is widely used in international transactions and whether it is widely traded in global markets."
Why the Government Hates Gold -Bill Bonner
"To the American people, Alan Greenspan was a combination of Mr. Fixit and the Wizard of Oz. They didn’t understand a word of what he said. And why should they? Greenspan made no sense when he spoke as Fed chairman - intentionally. As he later explained: 'What I've learned at the Federal Reserve is a new language, which is called Fed-speak. You soon learn to mumble with great incoherence.' But the blither and blather worked. The politicians kneeled before him. The press took off their hats. And the masses, awestruck by the incomprehensible, thought he was a genius....Back in 1966, when he still believed in free markets and sound money, he expressed himself clearly. 'In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.'" Read Gold and Economic Freedom by Alan Greenspan.
New ‘gig’ economy spells end to lifetime careers -Financial Times
"Employees recast as contractors, vendors and temporary workers. The gig economy is only part of a shift in employment over the past three decades, unleashed by technology and global trade. It has created many winners and losers, both by outsourcing jobs from the west to Asia and Africa, and by changing the terms on which most people work. Financial and contractual risk that used to be born by companies has been transferred to employees....The new world of work must chart a course between the twin dangers of corporate conformism and worker exploitation." Another reason for the massive U.S. shift toward part-time vs. full-time jobs is the economic uncertainty of misguided government and Fed policies over the last seven years, as covered in The Biggest Bank Heist in History
GDP: Index of Economic Welfare or Meaningless Metric? -Independent Review
"Economics is not a science of the production of hammers and nails but of wealth - the goods and services that people actually value, as they demonstrate by voluntarily forgoing alternative goods and services in the process of acquiring those they choose to acquire. It is unfortunate that once we recognize this reality, we are left to conclude only that, notwithstanding the disclaimers of nearly all current economists and other analysts who use the NIPA concepts and estimates, GDP is indeed a measure of economic welfare. It is simply an exceedingly poor such measure....It thus probably makes more sense to classify government services in general as 'anti-output' rather than as 'output'....As one looks upon what passes for empirical analysis in macroeconomics, the first impression that comes to mind is not the loveliness of GDP, but the ugliness of GIGO - garbage in, garbage out."
8.4.15 - IS ZERO GROWTH THE NEW NORMAL?
Gold last traded at $1,090 an ounce. Silver at $14.56 an ounce.
NEWS SUMMARY: U.S. stocks drifted lower Tuesday weighed down by a bearish outlook for Apple stock and downbeat economic reports ahead of jobs data later this week. Meanwhile, precious metals prices steadied on bargain hunting despite a firmer U.S. dollar.
US Recession Imminent As Factory Orders Plunge -ZeroHedge
"For the 8th month in a row, US factory orders fell YoY. Down 6.2% in June, this is the longest streak of declining factory orders outside of a recession in history. MoM, factory orders rose 1.8% - as expected - the most since May 2014, but historical orders and shipments were revised lower. Inventories continue to rise leaving inventories-to-shipments ratios at cycle highs."
Welcome to the New Normal: Zero Growth - SwissAmerica
"In this, the weakest economic recovery since World War II, government claims of 200,000 jobs per month ring hollow – especially when the bulk of these are low-wage, hamburger flipper jobs with static wages that are killing America’s Middle Class. Dying, too, in today’s stagnant economy is the traditional American Dream of home ownership. This is especially true for those 34 years of age or younger who cannot buy a first home or new car with their low credit, average $27,000 in college loan debt to repay, and low incomes. A large proportion of Millennials have postponed starting a family, and for the first time in history America’s fertility rate has fallen below the needed 2.1 babies per couple replacement rate. At 1.84 babies per couple, we have now joined the downward death spiral to demographic doom seen in Western Europe and Japan."
Greeks lose their love of cash -Telegraph
"Greece’s banking crisis is having at least one positive outcome, and it’s made of plastic. In a country where cash is king and undeclared transactions still make up about a quarter of the economy, about one million debit cards have been issued by banks since the government closed lenders for three weeks and imposed controls on euro bills." THE GREEK SHOWDOWN explains why capital controls, such as Greek citizens have faced may soon become the new normal worldwide.
Uber Represents a New Kind of Capitalism -NewsMax
"A popular new kind of capitalism, 'the sharing economy,' is emerging in America, and those on the left are fighting among themselves over whether to embrace or attack it. Sharing economy services must compete without having government monopolies and therefore are more responsive and reliable than the taxis and hotels of government crony businesses that take customers for granted....This is the choice: Incentives so we work voluntarily, or threats, coercion and involuntary servitude. As Nobel laureate economist Milton Friedman said, 'There ain't no such thing as a free lunch.' Somebody - free market capitalist or unmotivated socialist slave - must produce the goods we want and need. The new capitalism produces more goods and more freedom."
Cybersecurity bill could 'sweep away' internet privacy -The Guardian
"The Department of Homeland Security (DHS) on Monday said a controversial new surveillance bill could sweep away 'important privacy protections', a move that bodes ill for the measure’s return to the floor of the Senate this week. The latest in a series of failed attempts to reform cybersecurity, the Cybersecurity Information Sharing Act (Cisa) grants broad latitude to tech companies, data brokers and anyone with a web-based data collection to mine user information and then share it with 'appropriate Federal entities', which themselves then have permission to share it throughout the government." In THE SECRET WAR, discover why, under threat of regulatory punishment, banks must now spy on you for the government.
8.3.15 - THE OBAMA ECONOMY FLAT-LINING
Gold last traded at $1,089 an ounce. Silver at $14.52 an ounce.
NEWS SUMMARY: U.S. stocks tumbled Monday after data showed manufacturing and construction spending slumped to fresh lows. Meanwhile, the U.S. dollar rose sending oil and commodity prices lower.
Fed may spark dreaded stock correction -CNBC
"The stock market could be poised for a 10 percent decline as the Federal Reserve gets ready to hike interest rates for the first time in nine years, BlackRock Global Investment Strategist Russ Koesterich told CNBC on Monday. 'I think there's going to be a better opportunity to buy this market over the next two to three months,' he said....Another economic hurdle comes on Friday, when the U.S. government releases the July employment report, which could sway this self-proclaimed, data-driven Fed. " As covered in The Biggest Bank Heist in History, the Fed's zero interest rate policy has successfully painted the U.S. economy and stock market into a near-zero growth corner.
Greek shares plunge as market reopens -BBC
"The main Athens stock index, the Athex, ended the day down by 16.23% as trading resumed after a five-week closure. The nation's top four lenders - Piraeus Bank, National Bank, Alpha Bank and Eurobank - fell the most, all down 30%, the maximum allowed. Banks make up about a fifth of the index. The bourse was shut just before Athens imposed capital controls at the height of the debt crisis." THE GREEK SHOWDOWN explains why this Greek tragedy is still far from over.
THE OBAMA ECONOMY IS FLAT-LINING...AND SOON MIGHT SPIRAL INTO RECESSION -PRBuzz
Forget the American Dream. Welcome to Progressivism’s American Nightmare - By Craig R. Smith and Lowell Ponte - "Our economy’s growth from 2011 through 2014 has grown by an unlucky 13% less than claimed – averaging a miserably weak 2.0% growth. This embarrassingly-low growth, remember, happened in an era when the U.S. Treasury and Federal Reserve were injecting perhaps $6 Trillion of stimulus into the economy – and this astronomically large expenditure, much of which must be repaid by our children and grandchildren, produced only 2% growth. We might have done better by simply sending a check for more than $20,000 to every American. In several of our books, including our latest, DON'T BANK ON IT!, we expanded our prediction and analysis of why all this Keynesian stimulus would in reality become an 'anti-stimulus'....Our economy is supposedly growing by 2.3% but is being eaten up by 1.8% inflation not fully factored into the government’s books. This might mean that our real annual 'growth' could be 0.5%. Welcome to the New Normal."
Kansas $25 ATM withdrawal limit for welfare recipients -Kansas.com
"Kansas plans to keep a controversial $25 limit on ATM withdrawals by welfare recipients, despite the possibility that the restriction might violate federal law. Legislation was passed earlier this year to raise the limit, or do away with it entirely, but a newly revised version of Kansas’ welfare plan does not permit withdrawals of more than $25 per transaction per day. Out-of-state purchases also will be blocked."
Centennial Monetary Commission Act Advances -NY Sun
"The decision of Congressman Jeb Hensarling and the House Financial Services Committee to move the Centennial Monetary Commission Act to the floor marks an important moment in the dollar crisis. The measure would set up a commission to review the performance of the Federal Reserve as it begins its second century. What we like about this bill is that it lays this question where it belongs: the Congress of the United States. No central bank can be expected to examine its own performance. The universities did not create the Fed. The question of the Federal Reserve belongs in the body to which the Constitution grants the enumerated monetary powers. The Congress is the body that created the Fed, and it is the only body that can revise its mandates."
7.31.15 - Why The War On Cash?
Gold last traded at $1,094 an ounce. Silver at $14.74 an ounce.
NEWS SUMMARY: U.S. stocks traded mixed Friday after disappointing earnings from Exxon and Chevron and weak U.S. wage growth data. The U.S. dollar fell which, together with month-end bargain hunting, helped to propel precious metal prices higher.
Fed's trillions haven't helped worker paychecks -CNBC
"The central bank printed $4.5 trillion and all we got was a lousy 0.2 percent wage increase. After years of easing never seen before in global central banking history, the Federal Reserve's efforts have amounted to little when it comes to stimulating 'good' inflation, particularly in terms of wage increases....Taken together, the numbers seem less an indication of the rip-roaring economy Fed stimulus was supposed to generate and more an indicator of the same old, same old: Outsized benefits to stock market investors and debt-heavy corporations, with little feeding back into the real economy." If all of this sounds familiar, it is because this is what our books and White Papers, such as The Biggest Bank Heist in History, have been warning about.
The War On Cash: Why Now? -Mises Institute
"What exactly does a 'war on cash' mean? It means governments are limiting the use of cash and a variety of official-mouthpiece economists are calling for the outright abolition of cash. Authorities are both restricting the amount of cash that can be withdrawn from banks, and limiting what can be purchased with cash....Why Now?....Cash in hand cannot be chipped away by negative interest rates or fees....eliminating physical cash also eliminates the possibility of bank runs, as there will be no form of cash that isn't controlled by banks."
Who's Behind The War On Cash? - Research Report
The U.S. Government and Federal Reserve are fighting against cash on many fronts. Banks must now report cash withdrawal or deposit of $10,000 or more. Banks must also report to the government any financial behavior on your part it deems 'suspicious' or 'unusual.' In THE SECRET WAR, discover why...
* Under threat of regulatory punishment, banks must now spy on you for the government.
* Our government has made it risky to carry cash due to tougher asset forfeiture laws.
* 'Operation Choke Point' targets 30 types of businesses labeled as 'high-risk'.
Who needs the Fed? The rate hike cometh on its own -Reuters
"As traders, market pundits and economists jaw over whether the Federal Reserve this year will lift its benchmark lending rate for the first time in almost a decade, several corners of the U.S. bond market are not waiting around....Banks, money market mutual funds and other investors do not want to be stuck with low-yielding debt when the U.S. central bank finally does begin raising interest rates, something it last did in June 2006....The interest rate on three-month T-bills that mature on Sept. 17, when the Fed releases its next policy meeting statement, rose to almost 7 basis points on Thursday, the most in nearly 14 months."
About That Asterisk on Your Social Security Statement -National Review
"At first glance, the statement did not appear menacing. I was told I could expect to receive a benefit of 'about $2,136 a month' upon reaching age 70 - which certainly seems like good news. But immediately I thought of a parallel of President Obama’s infamous Obamacare promise: 'If you like your Social Security, you can keep your Social Security.' Then, as if on cue, I saw an asterisk with the following message: The law governing benefit amounts may change because, by 2033, the payroll taxes collected will be enough to pay only about 77 percent of scheduled benefits. I could not believe I was seeing the equivalent of what I was just thinking, but with a new twist, 'If I like my Social Security, I can keep 77 percent of it.'"
7.30.15 - Data Confirms Government & Fed Policy Failure
The Worst Expansion Since World War II Was Even Weaker -Wall Street Journal
"The economic expansion - already the worst on record since World War II - is weaker than previously thought, according to newly revised data. From 2012 through 2014, the economy grew at an all-too-familiar rate of 2% annually....While there have been highs and lows in individual quarters, overall the economy has failed to break out of its roughly 2% pattern for six years."
Is 1.5% Economic Growth in 2015 Enough? -FOX Business
Fox Business host Neil Cavuto asks Swiss America Chairman Craig R. Smith if he's encouraged or worried by recent economic numbers? According to Mr. Smith this is the slowest recovery since WWII. What concerns Smith most is that neither the Obama administration nor the Fed's fiscal policy is working. Today there is so much malinvestment - as a result of zero interest rate policy - and we are about to see those chickens come home to roost. Fed policy is creating massive distortions in the market. Smith's concern is that if we continue at the pathetic 2% growth rate (based on part-time work and record low participation), businesses will not have the confidence to invest and grow the economy. We need to get our fiscal house in order. Even former Fed Chair Alan Greenspan is worried by the growth of social spending from 15.5% in 2005 to 19.2% in 2014 ... and growing. To read the full story, request Mr. Smith's FREE Research Report The Biggest Bank Heist in History
Low rates are the problem, not the solution -Bill Gross, CNBC
"'Money for nothing' interest rate policies have failed, bond guru Bill Gross said in a broadside Thursday against global central banks. High-risk companies have been able to borrow on the cheap and stock markets have soared, but there's been little in the way of true investment to show for all the years of low rates, the Janus Capital fund manager said....In the fallout, Gross wondered what would happen to the 'zombie' companies issuing junk bonds, as well as those firms that have spent trillions on stock buybacks to boost share prices."
Tips for Catastrophe Protection -Miller on the Money
"Parenting never ends. My granddaughter bought her first car and asked me about insurance. She had two quotes: one with a $100 deductible and a second for $500 deductible. She was leaning toward the $100 deductible because 'it was only $10 more per month'. So why not take that option? I explained the higher premium policy buys an additional $400 in coverage and costs $120/year more. In a little less than 3.5 years and she would pay $400 in additional premium to the insurance company. Unless she planned to start wrecking a car every 3.5 years, it wasn’t a good investment. The lesson was simple, you self-insure for the small stuff, and buy insurance for the catastrophe." To discover the importance of "wealth insurance" against financial catastrophes read The Timeless Truth About Gold & Silver
7.29.15 - WHY THE FED IS CORNERED
Gold last traded at $1,092 an ounce. Silver at $14.74 an ounce.
NEWS SUMMARY: U.S. stocks gyrated higher Wednesday despite downbeat housing data and the latest Fed statement - which provided no further clarity on the timing of lifting U.S. interest rates. Fedspeak modestly boosted the U.S. dollar index, precious metal prices held steady.
Is the Fed About to Make It Worse? -The Nation
"A Fed decision to raise interest rates, expected sometime this year, amounts to a vote of confidence in the economy - a declaration that we have achieved the robust recovery we need. 'We are close to where we want to be, and we now think that the economy cannot only tolerate but needs higher interest rates,' the chairwoman of the Federal Reserve, Janet Yellen, told Congress during a July 15 policy briefing. But for many millions of Americans, the recovery has yet to arrive, and for them, a rate hike will be disastrous."
Fed Now Faces Four 'Zero Interest Rate Policy' (ZIRP) Outcomes -The Biggest Bank Heist in History
1. ZIRP CONTINUES and, at least in the short run, causes another artificial boom based on financial bubbles. The mass hallucination of hypnotized people continues.
2. ZIRP CAUSES STAGNATION and an economy that 'lingers in a recession-like, anemic state.' The government has gone $7.5 Trillion deeper into debt since 2009, but a stagnant U.S. economy struggling to maintain 2 percent growth...
3. ZIRP TRIGGERS FINANCIAL COLLAPSE as governments and giant banks default on the huge, low-interest debts they have run up. The economic landslide that began in 2008 can no longer be held back and this time drags the whole economy down with it.
4. ZIRP IS OVERCOME by American optimism and effort. The American people's hard work, faith and traditional values triumph over Progressive collectivism. We kick government-dependent addiction to Uncle Sugar's Progressive welfare state, and are cured of economic diabetes. Life again becomes naturally sweet, prosperous and free.
On the day that people have their own independent solid money again, the Federal Reserve and all its schemes like ZIRP can be bypassed on our road back home to America. The biggest bank heist in history will be over, and you will no longer be paying the price for Banks and Government getting gain from your pain.
To read the full story, request a FREE copy of The Biggest Bank Heist in History
Hillarynomics -New York Post
According to Fox Business's Charlie Gasparino, "Hillary Clinton thinks quarterly earnings reports are bad. She believes something called 'short termism' from activist investors like Carl Icahn is the root of all economic evil. Her remedy to make the world fair again: ramping up taxes on trades held for less than two years - to more than 40 percent under her 'six-year sliding scale.'.... One more thing worth considering: It was none other than Bill Clinton, with a huge assist from a Republican Congress, who cut capital-gains taxes in the late 1990s - a move that most mainstream economists say helped propel the mighty 1990s economy to new heights."
7.28.15 - CONFIDENCE IN CENTRAL BANKERS FAILING
Gold last traded at $1,094 an ounce. Silver at $14.66 an ounce.
NEWS SUMMARY: U.S. stocks rebounded from a five-day losing streak Tuesday, as investors looked past falling consumer confidence and China's continued stock market rout. Meanwhile, bargain hunting lifted gold prices near $1,100 an ounce, despite a firmer dollar.
57% of Americans Say Economy is "Getting Worse" -Gallup
"Gallup's Economic Confidence Index continued its gradual, downward slide, reaching -14 for the week ending July 26. This represents a 10-month low for the index....39% of Americans said the economy is 'getting better,' while 57% said it is 'getting worse.'....The instability abroad could be fueling Americans' doubts about the health of the U.S. economy, not to mention that the Dow closed lower several days in a row last week." So much for the economic "recovery" gaining traction in 2015.
Fed Getting Nervous About Zero Rates -Fox Business
"The Fed has said it wouldn’t raise rates until it met its dual mandate of full employment, which it defines as an unemployment range of 5.2%-5.6%, and price stability, which it defines as a 2% annual inflation rate. The unemployment rate now stands at 5.3% but inflation has remained stubbornly low - hovering for months at about half the Fed’s 2% target - because wages have been stagnant for months. 'This will very likely mark the 53rd meeting in a row in which the Fed has made no change in interest rates. It also may well be the last in this string with the Fed taking a first tightening step in September,' said David Kelly, chief global strategist at JPMorgan Funds....'The Fed is nervous about not being able to cut rates in response to the next recession if they never raise them from essentially zero,' Kelly said." No need to anxiously await the Fed's statement for the latest economic clues about interest rate hikes, just read The Biggest Bank Heist in History.
Gold Is 'Insurance if the Banking System Fails' -NewsMax
"Marc Faber, publisher of The Gloom, Boom & Doom Report, says nearly all asset markets are overvalued so it’s best just to stash away your cash right now and you’ll be poised to buy when market bubbles finally pop. But he does suggest allocating 25 percent of your investment portfolio to gold. 'Gold is insurance if the banking system fails,' he said at the CFA Analyst Seminar in Chicago in a presentation titled, 'Inflating Asset Markets and Deflating Real Economic Activity? Strategies for Global Investors.'" Watch: Pat Boone Explains Why Gold is Wealth Insurance.
Homeownership Drops To 48-Year Low; Rent Soars To All Time High -Zero Hedge
"Earlier today, the US Census released its latest homeownership data, which confirmed that for what is left of America's middle class, owning a home has become virtually impossible, with the homeownership rate plunging from the lowest level since 1986, or 63.7%, to just 63.4% the lowest reading since the first quarter of 1967. And the punchline, which should come as no surprise to anyone: with housing no longer affordable to most, the median monthly asking rent just rose to a record $803 across the US....There is no surprise why this is happening. As Bloomberg notes, the biggest culprit is wage growth which 'hasn’t kept up with surging home prices...'"
China is losing control -Telegraph
"Margin debt on the Chinese stock market has reached $1.2 trillion. 'We suspect that it’s a matter of time before banks may have to face the music,' Bank of America says. Chinese equities have suffered the sharpest one-day crash in eight years, sending powerful tremors through global commodity markets and smashing currencies across East Asia, Latin America and Africa....The violence of the moves unnerved investors worldwide, stirring fears that the Communist Party may be losing control after stoking a series of epic bubbles in property, corporate investment and equities to keep up the blistering pace of economic growth....'Large parts of the market are closed, and those stocks that are still trading are selling off regardless of support measures. Clearly something very serious is happening,' said one economist....This in turn risks setting off a 'bank run' on the shadow banking system as investors lose trust in wealth management funds, fearing that their deposits in the $2.1 trillion industry no longer have an implicit guarantee." Indeed, the risks of a bank run are rising, as Craig Smith and Lowell Ponte explain in DON'T BANK ON IT!
7.27.15 - STOCKS STRUGGLE AGAINST "SEA OF RED"
Gold last traded at $1,096 an ounce. Silver at $14.60 an ounce.
NEWS SUMMARY: The Dow Jones Industrial Average tumbled triple-digits on Monday, sparked by a Chinese stock-market rout. Investors sold risky assets - such as equities, commodities and the U.S. dollar - and piled into safe havens, such as Treasuries and gold.
China Stocks and the Dollar May be About to Collide -Marketwatch
"Chinese shares saw the biggest daily fall since 2007 overnight, partly on fears that officials may be trying to pull back on supporting the market. And that means things got ugly all over again - unless you’re a gold bug. The metal’s closing in on $1,100 an ounce. China’s worries have spread to oil, which is adding to last week’s 5% drop. With commodity prices lower, some say it looks less worrying on the inflation front, reducing the chances of a near-term Fed hike....Wall Street is set to struggle with a sea of red."
Chinese Stocks Suffer Second Biggest Crash In History -ZeroHedge
"The Shanghai Composite plunged by 8.48%, closing nearly at the lows, and tumbling some 345 points for its biggest one-day drop since February 2007 and its second biggest crash in history! 'Investors are not confident that the bull market will return any time soon,' Jimmy Zuo, a trader at Guosen Securities, told Bloomberg....EVERYTHING rests on one ephemeral thing - the market’s confidence in the power of Central Banks to ensure a good outcome no mater what. Anybody paying attention to the lesson should not just be thinking about what might happen when that fragile confidence evaporates, but taking steps to ensure they don't get caught out when it does." Speaking of fragile confidence in central banks, the Federal Reserve is meeting this week to consider future interest rate hikes and how best to continue The Biggest Bank Heist in History.
When Authorities "Own" the Market, The System Breaks Down -Of Two Minds
"Central planning asset purchases aimed at propping up prices destroy the essential price discovery needed by private investors. Panicked by the possibility of declines that undermine the official narrative that all is well, authorities the world over are purchasing assets like stocks, bonds and mortgages directly....As the risk-on investment mindset switches to risk-off, house prices start declining....By propping up the price, the authorities have injected false information into the market, and as a result, nobody can trust that current prices are real....What authorities have created is a facsimile of a market. It looks like a market on the surface, but only gamblers and fools risk capital in markets based on false information." What if everything, including money itself, is mispriced? What if only one numeraire matters in the end? Discover The Only Economic Solution To Mispriced Money & Markets.
22 banks accused of manipulating US Treasury auctions -CNBC
"Twenty-two financial companies that have served as primary dealers of U.S. Treasury securities were sued in federal court on Thursday, in what was described as the first nationwide class action alleging a conspiracy to manipulate Treasury auctions that harmed both investors and borrowers. The State-Boston Retirement System, the pension fund for Boston public employees, accused Bank of America's Merrill Lynch unit, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan Chase, UBS, and 14 other defendants of illegally trying to profit on the sale of Treasury bills, notes and bonds at investors' expense." No big shocker in this new story, especially to those who have already read DON'T BANK ON IT!
The Latest Pied Piper of "the Death of Capitalism" -LewRockwell
"The latest old Leftist to write a book on the end of capitalism is somebody I had never heard of: Paul Mason. His book is titled, Postcapitalism. To launch it, The Guardian, that aging warhorse of British Leftism, published his article: 'The end of capitalism has begun.' This has been announced repeated by The Guardian for 80 years....It never ceases to amaze me how people who cannot think straight can come up with new justifications for whatever worldview they decided at 20 was correct, and which did not pan out....Of course, when his new book sinks without a trace, there will always be another last man standing."
7.24.15 - BIG MAC CONFIRMS SHRINKING DOLLAR
Gold last traded at $1,085 an ounce. Silver at $14.48 an ounce.
NEWS SUMMARY: U.S. stocks extended losses Friday for a weekly loss as global economic data spooked investors and commodities continued to come under pressure. The U.S. dollar drifted higher while precious metal prices rebounded on bargain hunting.
Why aren't more Americans working? -Washington Times
"Has America entered a 'new normal' defined by lower economic growth and declining workforce participation?....Social and cultural trends affect work participation and have throughout history. There is a rising rate of single-parent families, who typically experience higher poverty rates than two-parent families....Testimony before the Joint Economic Committee revealed that programs put in place by the Obama administration during and after the recession have inadvertently reduced the reward of working....Other policies, such as the Affordable Care Act, minimum wage increases and the proposed federal overtime rule change, reduce employment opportunities and hours for workers."
Puzzled by the dollar outlook? Buy a Big Mac -CNBC
"The Economist looks at just one item, a Big Mac, in several dozen countries around the world as a standard measure of value. For example, the average price of a Big Mac in the U.S. this month was $4.79; in China it was only 17 yuan, which works out to only $2.74 based on market exchange rates. So that price differential indicates that the yuan was undervalued by 43 percent." The price of a Big Mac can also help us measure the true inflation and shrinkage of the dollar's buying power in the U.S. About forty years ago, in 1974, a Big Mac cost just $.65 - today it's $4.79 - which is a 735% price increase since President Nixon abandoned backing our currency with gold in August 1971. BUT, If you own gold or silver, your buying power has kept up with rising prices and has offset the falling dollar. For example, $.65 face value of 90% silver coins today have a market value of $8.55 - enough to buy a Big Mac, fries, a large drink and a dessert. Hard-owned money protects your hard-earned money. Read The Timeless Truth About Gold & Silver.
Fed Accidentally Released Confidential Projections -Bloomberg
"The Federal Reserve said it inadvertently released on its public website confidential economic projections prepared by its staff for the June 16-17 meeting of the policy-making Federal Open Market Committee....The projections show the Fed staff expected the federal funds rate to average 0.35 percent in the fourth quarter of 2015. Economists said that implied one interest-rate increase by the Fed this year....Fed officials’ forecasts released in June implied two rate increases in 2015, with the benchmark lending rate finishing the year at 0.625 percent, according to their median estimate." Craig Smith and Lowell Ponte explain in The Biggest Bank Heist in History...Virtually zero percent interest rates are to long-term economic policy what junk food is to nutrition – it tastes great going down, but later come horrible results....[that] pose dangers for all of us.... ZIRP [is]...how the Fed gave the U.S. Financial Diabetes.
Jim Grant: Still Bullish On Gold -ValueWalk
"Don’t tell Jim Grant, the publisher of Grant’s Interest Rate Observer, that gold is a hedge. The author and publisher said the metal is much more dynamic; providing a trifecta of price, value and sentiment, and investors should have exposure to it. '[G]old is an investment in monetary and financial disorder - not a hedge. You look around the world and you see exchange rates are properly disorderly, when you look around the world of lending and borrowing - we are in a regime of price control by another name, so-called zero percent rates and quantitative easing by the world central banks – we are in one of the most radical periods of monetary experimentation in the annals of money,' Grant told Kitco News Thursday."
Coins Worth Their Weight in Gold -- And Then Some -TheStreet
"'When gold drops this fast and this much, we see a lot of people jump into the markets,' said Chris Brigandi, the manager of Brigandi Coin Company in New York. 'We've had a lot of people calling and coming to the store to buy gold because they think it's a great buy right now.'....But both gold and silver, its (considerably) cheaper alternative, 'will bottom out, probably sooner than most people think,' said Jim Wyckoff, Kitco's senior technical analyst. 'We'll be in 'up-trends' at some point.'...One example of a collector's return on investment is the 1994 Proof Silver Eagle coin, originally purchased for $23 and recently sold for nearly $1,800..."
7.23.15 - SELL RISK, BUY SAFETY
Gold last traded at $1,094 an ounce. Silver at $14.70 an ounce.
NEWS SUMMARY: U.S. stocks turned lower Thursday - despite upbeat unemployment data - as investors sold riskier stock assets to buy Treasuries. Gold prices hovered near $1,100 an ounce amid bargain hunting.
Surge in Demand For Coins, Bars Around World -ZeroHedge
"The manipulative smash on the gold price on Sunday night has once again led to a surge of buying of gold coins and bars across the globe. Both the Wall Street Journal and Reuters report on how bullion dealers are seeing a spike in demand for gold coins and bars in India and China and indeed Europe, Australia and the U.S. The U.S. Mint - which ran out of Silver Eagles earlier in the month due to unexpectedly high demand - has sold 110,000 Gold Eagle one ounce coins so far this month according to Reuters. This compares with a mere 21,500 ounces sold in May and 76,000 in June. It represents the highest level of monthly demand in over two years - with more than a week to go till the end of the month."
Time to Sell Risk Assets, Buy Gold? -Barrons
"Few are talking about shorting gold these days. That's because the price of the metal has come down so hard and fast in recent months. On Wednesday, gold futures logged their 10th straight session of losses. At a price of roughly $1,093 an ounce, many are beginning to wonder whether the investors are finally capitulating or throwing in the towel, setting the stage for a comeback in the metal’s price. Writing on his Felder Report blog, Jesse Felder argues that gold looks like a buy now..." Learn how simple it is to hedge rising market risks by putting yourself on a personal gold standard, read The Timeless Truth About Gold & Silver.
Gilder Shows Why Modern Macroeconomics Is Anti-Scientific -CobdenCenter
"There are a number of myths about the gold standard. These have ossified in the minds of such Keepers of the Conventional Wisdom, besides Prof. Krugman, as Austin Goolsbee, once President Obama’s top economist....These myths also paralyze the thinking of the current crop of our economic officials and policy makers....The gold standard, as Gilder trenchantly shows, is eminently scientific and, thus, modern....It is macroeconomics that is the pseudo-'science.' Thanks to George Gilder’s brilliant new 106 page monograph, The 21st Century Case For Gold, elucidating the monetary implications of Shannon information theory, we better understand the scientific grounding for the classical gold standard." Read Gilder book review and free download link
Banks still trump citizens in the minds of regulators -Fortune
"Federal watchdogs have plenty to say about the well-being of big banks, but very little about the financial health of regular Americans....In elite circles, of course, some officials would like to move on. The Federal Reserve is even considering raising interest rates. But how carefully have they looked at their own data and analyzed the effect of interest rate changes on those who have been left behind and who remain in this economy debtors rather than investors?.... At the end of May, the Federal Reserve released its 'Report on the Economic Well-Being of U.S. Households in 2014.' The results were dismal. The survey showed that nearly 60% of those polled believe they are the same or worse off than they were in 2008, and 28% of those responding had to rely on family or friends for financial assistance in the last year." In DON'T BANK ON IT! Craig Smith and Lowell Ponte explain why big government and big banking interest will always trump citizens.
7.22.15 - THE ULTIMATE 'GREATER WISDOM' ASSETS
Gold last traded at $1,091 an ounce. Silver at $14.73 an ounce.
Why US stocks could drop up to 40% -CNBC
"The U.S. stock market could 'easily' drop 20 percent to 40 percent, closely followed contrarian Marc Faber said Wednesday - citing a host of factors including the growing list of companies trading below their 200-day moving average. 'It shows you a lot of stocks are already declining.'....Faber, who lives in Asia, said he sees 'no growth' coming from the economies there, with some countries in recession. As a result, Faber does not see much strength coming from the rest of the world." The Fed's failed experiment in zero interest rate policies is killing the American dream while pumping up a stock market bubble, as Craig Smith and Lowell Ponte explain in The Biggest Bank Heist in History.
The Ultimate 'Greater Wisdom' Assets -Swiss America
The mass media loves stomping on gold bugs, usually claiming gold is a "bad" investment or and "underperforming" commodity. For example, Guy Foster, Group Head of Research at Brewin Dolphin recently told the press, "Gold is the ultimate greater fool asset - the only reason anyone will buy it is because they think they can sell it to someone else for more." WRONG! Like most Americans, this poor guy is confused about the true function of gold. The reasons for maintaining a "core" holding of physical gold go far beyond profit alone. Gold is the ultimate form of money which has served as wealth insurance for thousands of years. Since day one Swiss America has told the public the full story: Gold is neither a commodity nor an investment - it is the world's most trustworthy store of value, time and labor. The truth is, physical gold and silver coins are the ultimate 'greater wisdom' assets! Call Swiss America today at 800-289-2646 ... it's the wise thing to do!
Gold is about to see a comeback -CNBC
"Gold [prices] recently tumbled to five-year lows. But according to one strategist, the precious metal isn't going to stay down for long. 'With all the bears in the woods, everybody [being] bearish is probably the most enticing reason to start to pick at the market,' George Gero said Tuesday on CNBC's 'Futures Now.'....'Gold, right now, is oversold,' Scott Nations, president and chief investment officer of NationsShares, said Tuesday. 'It's because people really were hitting the sell button regardless of price.'"
Ongoing Greece Bank Deposit Run -ZeroHedge
"Despite the imploring of Greek bankers for Greeks to 'take your money out of your chests and houses - which are not safe in any case - and deposit at banks,' it appears the Greek bank deposit run continues. As The ECB just announced another €900 million increase in Emergency Liquidity Assistance, strongly suggesting that in the 2 days since the last increase, banks are once again insolvent facing a liquidity crunch as the 'banks are trustworthy' propaganda falls on very deaf Greek ears." THE GREEK SHOWDOWN explains why this Greek tragedy is still far from over.
What is your time really worth to you? -ClearThinking.org
"You've probably heard the saying 'time is money.' It's a popular line for a reason - it's true....Everyone has an implicit value for their time, though they may not think in those terms. Even a billionaire will volunteer to do an extra hour of work if he or she is offered enough money in return (say, ten million dollars). Likewise, even a desperately poor person will refuse an extra hour of work if the compensation is too small (say, a penny). The value of time can also change dramatically depending on how much of it you have available - you will likely value your free time much more highly if you're very busy than if your schedule is completely clear."
7.21.15 - GOLD MINIMIZES DOWNSIDE RISK
Gold last traded at $1,103 an ounce. Silver at $14.78 an ounce.
NEWS SUMMARY: U.S. stocks fell sharply Tuesday on disappointing earnings amid a lack of fresh economic data. Meanwhile, the U.S. dollar pulled back and precious metal prices stabilized above 5-year lows.
Go For Gold in 2015! -Jim Cramer, CNBC
Gold brings a special element into a portfolio, one that makes it different from all other metals. "I consider gold as an insurance policy," says CNBC's Jim Cramer. Cramer recommends gold because it tends to go up when everything else is going down. It is the investors' insurance against geopolitical events, uncertainty and inflation. Just as you wouldn't own a home or car without insurance, you shouldn't have a portfolio without gold. Do you get upset when your insurance doesn't go up in value? No. So, don't ridicule gold. Owning gold is not about upside potential. It is about minimizing risk to the downside. Read more in Swiss America's 2015 Real Money Perspectives.
3 Reasons Why Gold Is Oversold -Barrons
"First, sure, gold has suffered from a stronger dollar, but the decline in gold far exceeded the rise in the dollar....Plus, the Federal Reserve Bank will remain very accommodating even after the first rate hike, which means gold remains a good 'store of value', wrote analyst Simona Gambarini....Second, yes, for the time being, Europe found a temporary solution to the Grexit fiasco. But let’s not kid ourselves - the Greece problem is not going away - so gold is still a viable 'safe-haven' asset. Third, China and India may prove to be aggressive future buyers..."
Gold: A Pure Measure of Time -George Gilder
"The source of the value of money is time - irreversible, inexorably scarce, impossible to hoard or steal, distributed with remorseless equality to rich and poor alike. As an index of time, gold imparts the accurate price signals needed for sustained economic growth and expanded opportunity. Gold can function as money because it operates outside the financial economy as an index of the time it takes to extract it from the earth. The cost of extraction rises almost in proportion to the advance of mining technology. Gold thus cancels capital and technology and becomes almost a pure measure of time. Only gold money is rooted in time." The 21st Century Case for Gold book review...
Fed's New Capital Restraints for Big Banks -New York Times
"Nearly eight years after panic on Wall Street tipped the country into a severe recession, federal regulators are still trying to minimize the risks to the overall economy posed by large banks. The Federal Reserve introduced new restraints on Monday that would apply to eight of the nation’s largest banks, which hold more than $10 trillion in loans and securities. The banks include big Wall Street firms like Goldman Sachs, Citigroup and JPMorgan Chase, which currently faces an estimated $12.5 billion financial shortfall under the new rules....Representatives for the large banks had criticized the new rules, contending that they might make American banks less competitive compared with foreign banks." Ironically the U.S. Government and Federal Reserve are now forcing big banks to hold more cash, at the same time they are punishing Americans with near zero banks returns and mounting a new "War on Cash" - as Craig Smith and Lowell Ponte detail in THE SECRET WAR. For example, Did you know the total currency in the U.S. financial system is about $1.36 Trillion? That's less than 1% of the total "money" in the financial system. Yes, the “War Against Cash” is happening because cash has become intolerably dangerous to the giant illusion built on debt.
7.20.15 - WHY $1,100 GOLD A GREAT BUY!
Gold last traded at $1,106 an ounce. Silver at $14.75 an ounce.
NEWS SUMMARY: U.S. stocks inched higher Monday as investors digested earnings reports. Precious metal prices fell sharply on Asian selling after China reported gold reserves rose less than expected.
11 Reasons $1,100 Gold is a Great Buy! -Swiss America
1. Solid fundamentals - Gold is the ultimate "wealth insurance"
2. Gold production cost - Average cost to mine 1 oz. gold is $1,100
3. Gold stands test of time - debt-free asset, "Time is money" -Ben Franklin
4. Gold is NOT a commodity or an investment - it's worldwide money
5. Gold is a 100% liquid asset - not politically controlled by governments
6. Money either builds or destroys nations - debt money tears us down
7. Financial peace of mind - requires a "personal gold standard"
8. Gold is undervalued - forget about upside, cover downside risks
9. U.S. Constitution - (Art. 1., Sec. 10) requires gold/silver money
10. Private wealth - classic U.S. gold coins = privacy of ownership
11. Cost dollar averaging - Wise economic principle to grow wealth
Gold Plunges to Lowest Since 2010 -Bloomberg
"China, the world’s largest consumer of bullion, reported gold reserves on Friday that were smaller than expected. Prices fell below the 2014 low, a level that makes the metal vulnerable to more losses, Georgette Boele, a strategist at ABN Amro Bank NV in Amsterdam, said by e-mail on Monday. 'This sudden drop during Asian trading seemed to have been triggered by some stop-loss selloffs that have nothing to do with fundamentals,' Wallace Ng, a trader at Gemsha Metals Co., said from Shanghai. 'The market is in one of its bear phases, where any news is bearish news,” said David Baker, Sydney-based managing partner at Baker Steel Capital Managers LLP."
TEXAS “BANK” COULD DEFEAT OBAMA’S BIG MONEY GRAB -Western Journalism
By Craig R. Smith & Lowell Ponte - "A new kind of 'bank' is being born that might break the money monopoly of the Federal Reserve, thwart President Barack Obama’s takeover of our banks, and restore honest money in America. In this bank your hard-earned savings are secured not in ever-inflating dollars, but in gold, silver or other precious metals. Your bills can be paid by electronically transferring not dollars but quantities of gold with others who have accounts there....Could it be Texas will lead the charge to restore financial freedom - by liberating us from the tyranny of the Federal Government and Federal Reserve's fiat paper money system? We hope so!"
The 21st Century Case For Gold -Swiss America
"Being a so-called 'gold bug' can be very counter-intuitive in today's world of changing economic and monetary values. The public has been told over and over by so-called experts to think of gold as either 'just another commodity' or 'just another investment'. But for over 30 years Swiss America has told the public the full story: 'Gold is neither a commodity nor an investment - it is the world's most trustworthy store of value, time and labor.' Now a new scholarly book and scientific theory, with substantial imperative evidence, backs us up our premise. George Gilder's book, The 21st Century Case for Gold: A New Information Theory of Money (PDF) confirms that freedom-loving citizens seeking alternative forms of money that will stand the test of time can put themselves on a 'personal gold standard' with confidence." Discover The Timeless Truth About Gold & Silver.
Greek Banks Reopen Their Doors -Wall Street Journal
"Greek bank branches reopened their doors after a three-week shutdown imposed to prevent a banking system collapse, but almost all the restrictions on financial transactions remained in place - a sign of how far Greece remains from normality....Most capital controls, including limits on cash withdrawals and money transfers, remain in place at Greece’s banks. But from Monday depositors are allowed to bundle their €60 ($64.96) daily withdrawal limit over several days and take out a cumulative €420 at the end of the week." THE GREEK SHOWDOWN explains why this Greek tragedy is still far from over.
7.17.15 - BEST GOLD BUYING OP IN FIVE YEARS!
Gold last traded at $1,131 an ounce. Silver at $14.83 an ounce.
NEWS SUMMARY: U.S. stocks traded mixed on Friday - with a Google price spike boosting tech stocks - amid rising consumer inflation and falling consumer sentiment. Meanwhile, a firmer U.S. dollar together with technical selling pressure pushed precious metal prices to five year lows.
Top money managers are turning to gold - should you? -Marketwatch
"The world’s top money managers have hated gold bullion for almost as long as anyone’s been asking them. But not anymore. With China wobbling, Europe in turmoil and the price of bullion down to multi-year lows, the long-running gold skeptics running the world's biggest investment funds have suddenly and dramatically turned on to its appeal. 'Gold is undervalued' at around $1,155 an ounce, say a small majority of managers, according to the latest Bank of America Merrill Lynch survey." The importance of this survey shouldn't be ignored. Bank of America Merrill Lynch surveyed over 100 of the top investment exerts who manage about $400 billion in assets globally. "Gold has certainly become cheaper and cheaper in recent years, especially in relative terms. Since 2011 — around the time current presidential candidate Donald Trump turned bullish of gold, as it happens — gold has fallen about 40% in U.S. dollar terms. Meanwhile, stocks and bonds have boomed to new highs. So it isn’t completely crazy to think that maybe you should sell a little of what’s gone up to buy a little of what’s gone down."
Consumer Price Inflation Rising -Fox Business
"U.S. consumer prices rose for a fifth straight month in June as the cost of gasoline and a range of other goods increased, further signs of firming inflation that strengthen the case for an interest rate hike this year. The Labor Department said on Friday its Consumer Price Index rose 0.3 percent last month after increasing 0.4 percent in May."
China Banks Recruited in Stock Market Rescue -Voice of America
"China's biggest banks have lent 1.3 trillion yuan ($209.4 billion) to the country's state-backed margin lender to halt a meltdown in Chinese shares, local media said on Friday, underlining the government's determination to support stock prices....Spooked partly by speculation that China's central bank was about to end its monetary policy easing, China's stock market plunged in the past month by nearly a third at the peak of its sell-off, wiping out around $4 trillion. The collapse in stock prices sparked China's biggest rescue effort of its equity market, with the government launching a series of moves that included halting initial public offers, and banning firms and their executives from selling shares."
$1 Trillion Pension Shortfall Set to Grow -Bloomberg
"Houston was warned by Moody's Investors Service this month that it may be downgraded because of mounting retirement bills, the latest municipality put on notice as the company ignores bookkeeping gimmicks that let cities mask the size of their debt for years....Cities that shortchanged pensions for years are under growing pressure to boost their contributions, even after windfalls from a stock market that's tripled since early 2009....That was on display this week for Chicago, whose credit rating was cut to junk by Moody's in May because of a $20 billion pension shortfall....Moody's, which in 2013 began using a lower rate than governments do to calculate future liabilities, has estimated that the 25 largest U.S. public pensions alone have $2 trillion less than they need. Cincinnati and Minneapolis are among cities Moody's has since downgraded."
Twin Crack-Ups Set To Implode World Economy -King World News
"The ECB and the EU are now in control of the Greek economy, banks and national assets. There is absolutely no chance for Greece to recover as part of the EU. And what happened to Greece will be the model for the next set of weak countries such as Italy, Spain, Portugal and France. They will all fall as dominos [sic] before too long.... So we will see twin $200 trillion debt and $1.5 quadrillion derivatives implosions. That will lead to the most historic wealth destruction ever in global stock, with bond and property markets declining at least 75 - 95 percent. World trade will also contract dramatically and we will see massive hardship across the globe....The Greek crisis is proof of how important it is to hold a substantial amount of gold outside the banking system. The Greek banks almost collapsed, but because Greece is a relatively small country, its banking system was saved in the short term. But as the problems in the world economy and the financial system worsen, we will see bail-ins of depositors' money in most countries."
7.16.15 - IN BANKS WE TRUST?
Gold last traded at $1,143 an ounce. Silver at $14.98 an ounce.
NEWS SUMMARY: U.S. stocks traded higher Thursday on upbeat bank earnings, as fears of a Greek exit from the eurozone subsided. Meanwhile, the U.S. dollar climbed amid ongoing euro weakness, pressuring precious metal prices.
Investors in Greek Banks Face Wipeout -Wall Street Journal
"Even as Greek politicians on Thursday passed austerity measures to ensure a new bailout, investors in the country’s banks faced the prospect of their holdings being 'wiped out' under the terms of a €25 billion recapitalization plan. To avoid imposing losses on depositors and senior bondholders at the Greek banks, shareholders will likely be 'wiped out' under the European Stability Mechanism recapitalization, according to Alberto Gallo, head of macro credit research at Royal Bank of Scotland." What we are witnessing in Greece this year is an early warning sign for all nations living above their means. Capital controls are coming worldwide, warn Craig Smith and Lowell Ponte in DON'T BANK ON IT! The Unsafe World of 21st Century Banking.
How Greeks Are Coping With Capital Controls -Bloomberg
"Heavily reliant on Greek tourism over foreign, [restruant owner] George Kakazanis is on the frontline of the country's ailing economy. Like his country he too is struggling to pay his bills having amassed 100,000 euros ($109,000) worth of debt for everything from tax to electricity. The introduction of capital controls has exasperated the situation. With banks closed for over two weeks Greeks are even less willing to spend but that doesn't mean that business stands still. 'My son is a fisherman. Today I took two kilograms of my son's fish to the butcher. He gave me two kilograms of meat in return,' says Kakazanis. 'We don't take money to the bank. The money we earn is spent on supplies and expenses to eat and drink.'" It appears Greek citizens have virtually no trust left in their banks and, on a grassroots level, are now resorting to a barter system for daily business transactions.
A Fed Without Vision -New York Sun
"It’s nothing short of amazing to see the stonewalling of Congress by the Federal Reserve. This was certainly the headline news out of the testimony by the chairman of the central bank, Janet Yellen, before the House Financial Services Committee. It’s not only that she’s resisting the beginnings of the movement in Congress for greater oversight of the formation of monetary policy. She’s also resisting the congressional demands for documents related to what Congress suspects was, as Reuters put it today, a 'failure to properly respond' to the leak three years ago of 'sensitive information to a private financial newsletter'....We are approaching the half century mark in our experiment with fiat money, meaning money that has no legislated definition and is not defined in terms of gold or silver. We have consumed an entire presidency waiting for a full recovery from the recession that struck in 2008, a recession that the leaders of the Federal Reserve - both Ben Bernanke and Mrs. Yellen - have confessed they failed to see in the models and data followed by the Fed." Without a clear vision, nations and currencies perish. Today the Fed's failed experiment in zero interest rate policies is killing the American dream, as Craig Smith and Lowell Ponte explain in The Biggest Bank Heist in History.
Texas Launches Gold-backed Bank, Challenging Federal Reserve -The New American
"The State of Texas is setting up a gold-backed bank that will allow depositors to bypass the controversial Federal Reserve System and its fiat currency in banking and commerce, according to the state representative who authored the recently enacted law. Under the measure, passed overwhelmingly by lawmakers and signed in mid-June by Republican Governor Greg Abbott, Lone Star State officials will establish and operate the Texas Bullion Depository for anyone who would like to deposit and trade in precious metals. The implications are as big as Texas." In a world of stagnant growth, currency deception and untrustworthy banks; this could be the start of a new nationwide trend. Meanwhile, we suggest putting yourself on a personal gold standard, as we cover in The Timeless Truth About Gold & Silver.
7.15.15 - SOUND MONEY STANDS THE TEST OF TIME
Gold last traded at $1,147 an ounce. Silver at $15.04 an ounce.
NEWS SUMMARY: U.S. stocks traded near flat Wednesday following Fed Chair Janet Yellen's Congressional testimony. She said the Fed plans to raise rates this year IF the economy evolves as expected. Yellen acknowledged the Fed may have reduced the amount of available credit, referring to it as ‘unintended consequences.’ Meanwhile, the euro fell on Greek fallout lifting the U.S. dollar and dampening precious metal prices.
Yellen urges Congress to mind their own business -The Hill
"Federal Reserve Chairwoman Janet Yellen urged lawmakers to tread lightly when it comes to overhauling the central bank, warning that proposed changes could undermine its ability to support the economy. 'Efforts to further increase transparency, no matter how well intentioned, must avoid unintended consequences that could undermine the Federal Reserve's ability to make policy in the long-run best interest of American families and businesses,' she said." The Biggest Bank Heist in History explains how the FED's free money to big banks has left our economy and wages stagnant - while creating the biggest stock market bubble in history! The truth is, "the Fed's zero interest rate policy (ZIRP) undermines the health of the body politic and the free market economy. It not only sucks away the lifeblood of capitalism – capital – but also destroys the morals, values, entrepreneurship, work ethic and thrift needed for successful free enterprise."
Citizens seek private pathways to sound money -Washington Times
"What is money? ....'Money as the metric and information bearer can be reliable to the extent that its value is also rooted in time,'" says economist-technologist-philosopher George Gilder. Mr. Gilder and others argue that only gold is rooted in time. Gilder, who has written many bestselling and provocative books, including Wealth and Poverty, Microcosm, Telecosm, and Knowledge and Power, has now produced a remarkable essay titled, “The 21st Century Case for Gold: A New Information Theory of Money (PDF).” "In sum, Mr. Gilder argues that money is information, and that at some point a bitcoin-like non-government money will emerge on the Internet whose price will merge with that of gold, becoming bitgold."
Mr. Gilder has done the world a big favor writing this new monograph on gold. He reminds readers that no paper currency can be an accurate measure of wealth or time unless it is rooted an unchanging "a store of value". Gold alone is the ultimate "numeraire" - or plumb line for measuring all other forms of money. This simple chart illustrates why gold protects your time, labor and future.
As Craig Smith and Lowell Ponte wrote in their White Paper, RE-MAKING MONEY: Ways to Restore America's Optimistic Golden Age ...
The highway to the socialist welfare state, and to serfdom, is a carpet of government paper fiat money.
The path back to the practical and moral values of America's Founders requires us to restore the precious metal they constitutionally specified as real money.
This is the philosophical difference between a society built on paper promises and a society built on a solid foundation of integrity and gold.
Producer Prices Rise 5% Annualized -Fox Business
"The Labor Department said on Wednesday its producer price index increased 0.4 percent last month after increasing 0.5 percent in May. It was the second straight month of increase in producer prices....Wholesale egg prices soared a record 84.5% last month after surging 56.4% in May. Higher gasoline and food prices are likely to filter through to the June consumer price index released on Friday."
With or Without Greece, The Eurozone Is In Trouble -NYTimes
"The euro was supposed to boost European economic growth and living standards, strengthen public finances and hence the sustainability of welfare states....The hoped-for convergence in living standards between richer and poorer members of the eurozone has failed to materialize.... If there is a Greek exit, investors will be fully aware that a sovereign default could lead to a banking sector collapse." THE GREEK SHOWDOWN explains why this Greek tragedy is not over yet and how the next debt crisis could quickly spread worldwide.
7.14.15 - NUCLEAR IRAN: A BIG MISTAKE
Gold last traded at $1,153 an ounce. Silver at $15.31 an ounce.
NEWS SUMMARY: U.S. stocks inched higher Tuesday, despite downbeat June retail sales numbers. Meanwhile, currencies and precious metal prices both drifted lower ahead of Fed-head Janet Yellen's semi-annual testimony to Congress Wednesday.
Iran, World Powers Reach Nuclear Deal -WSJ
"Iran reached a landmark nuclear agreement with the U.S. and five other world powers....The Obama administration and its partners hope the deal will resolve a dispute that at times threatened to spark a military conflict....Critics in Washington, Israel and the Gulf nations that neighbor Iran say the deal will merely delay the country’s path to nuclear weapons....Israeli Prime Minister Benjamin Netanyahu called the deal a historic mistake."
Iranians Euphoric After Nuclear Deal Reached -Vocativ
"Iranians posting across social media platforms are elated that Iran and six world powers reached a historic nuclear deal Tuesday after almost a decade of negotiations. The agreement limits Iranian nuclear activity in exchange for billions of dollars in sanctions relief."
According to AMERICA ENGULFED an important White Paper by Craig Smith and Lowell Ponte, "World War III has already begun in the Middle East with the dawn of the 'Arab Spring', the destabilization of governments from Egypt and Libya to Iraq and Yemen, and the proliferation of nuclear weapons driven by weak American acquiescence to the ambitions of the theocratic state of Iran's apocalyptic rulers." The world depends on oil from this region to fuel our economies. The future of both the U.S. Dollar and the Euro depends on the level of chaos in the Middle East.
The biggest threat to our global economy -CNBC
"We have now hard evidence that the Chinese economy is hardly growing at the present time," the publisher of The Gloom, Boom & Doom Report said on CNBC's Trading Nation. "If China slows down, the demand for industrial commodities goes down. It affects all the resource producers: Argentina, Brazil, the Middle East, Central Asia, Africa, Australia," Marc Faber said Monday. "That can have a huge impact on the global economy....Greece is a sideshow, because the economy is small relative to the rest of the world. But if investors are so concerned about Greece, it shows how fragile the financial markets are," Faber said.
Wall Street’s disastrous 'fix' for Puerto Rico -NYPost
"Officials from Puerto Rico met in New York Monday to explain to Wall Street lenders their plan to deal with a fiscal meltdown that threatens to sink the US territory further into a Greek-style financial abyss. Sounds like progress, right? Well, that depends on how you define progress. For holders of the island’s more than $70 billion in debt, the increase in taxes and other austerity measures Gov. Alejandro Garcia Padilla says he might consider in exchange for some degree of debt relief might be a good thing. But for the people of Puerto Rico, it couldn’t be worse. It all but ensures a downward spiral of big government squeezing a smaller and smaller tax base so Wall Street can get a quick payday and we can all take a victory lap and proclaim 'crisis averted!'" Who will be the next Greece? Will it be Portugal, Italy or Spain? Or, closer to home, could it be Puerto Rico, Illinois or New Jersey - who are all facing bankruptcy - like Detroit? Find out by reading THE GREEK SHOWDOWN.
7.13.15 - GREECE: MICROCOSM OF THE WORLD
Gold last traded at $1,155 an ounce. Silver at $15.45 an ounce.
NEWS SUMMARY: U.S. stocks advanced Monday as investors cheered an agreement for Greece's third bailout to keep them in the eurozone. Meanwhile the Euro fell sharply, boosting the U.S. dollar and weakening precious metal prices.
Greece aims to end bank holiday Thursday -Reuters
"Greece will extend a bank holiday that has been in effect since June 29 for two more days, two bankers told Reuters on Monday after a meeting with the country's deputy finance minister. 'The aim is to reopen branches on Thursday,' one of the bankers said, declining to be named. Greece imposed capital controls, rationing cash to a daily withdrawal limit of 60 euros from automatic teller machines after a wave of withdrawals threatened to overwhelm the system." THE SECRET WAR, a new Research Paper by Craig R. Smith & Lowell Ponte, explains why the U.S. Government and Federal Reserve are behind an expanding “War on Cash”.
Assets Greece Handed Over To Europe -ZeroHedge
"The two most humiliating aspects of the latest extend and pretend 'deal' for the Greek people will be the return of the Troika's IMF mission to Athens, and the escrowing of some €50 billion in Greek assets in a liquidation fund....What are these assets? For the answer we go to the horse's mouth, Jeroen Dijsselbloem, who laid out the holdings of the proposed Greek privatization that would be sold off as follows: 'It still is going to be an independent fund, valued at €50 billion which can be airplanes, airports, infrastructure and most certainly banks.'" Read THE GREEK SHOWDOWN to understand why this Greek tragedy is not over yet and how this debt crisis is about to quickly spread worldwide.
Elite leading Greece and the World to Perdition -KingWorldNews
"Greece is of course only a microcosm of the world as a whole. Virtually every nation in the West has the same problem, including Japan plus China and the Emerging world. Everybody focuses on little Greece with a debt of €320bn that has only increased by 33% since the Great Financial Crisis started in 2007. Take the US with a debt of $18 trillion and a debt that has gone up by 100% since 2007. Thus, the US federal debt has increased by $9 trillion in the last 8 years as against an increase of only €80bn for Greece. Also, the US has not had a real budget surplus since 1960. So the Elite is using little Greece as a diversion from the real problem in the world which is of course a virtually bankrupt US economy."
China Seeks More Influence in Gold Prices -Bloomberg
"China’s opening more of its gold market to Hong Kong investors, the latest step in its campaign to influence the price of bullion globally and expand use of the renminbi beyond its borders. Members of the Hong Kong-based Chinese Gold & Silver Exchange Society will be able to use offshore yuan to buy and sell the precious metal on the Shanghai Gold Exchange when trade starts at 8 p.m. local time on Friday, according to Liu Liang, a spokesman for the exchange." Gold and silver are respected and accepted worldwide because they're pure, liquid, debt-free assets which can still be held privately in your own two hands. Owning physical gold and silver coins today also positions you to preserve your wealth for a lifetime, as well as for the next generation. Read more: The Timeless Truth About Gold & Silver.
7.10.15 - THE ILLUSION OF STABILITY
Gold last traded at $1,157 an ounce. Silver at $15.48 an ounce.
NEWS SUMMARY: U.S. stocks rallied Friday on renewed hopes that debt-laden Greece will reach a deal with its creditors this weekend and stave off an exit from the eurozone. Precious metal prices steadied as hopeful investors bought Euros and sold U.S. dollars.
Yellen expects rate hike this year, but... -Reuters
"Federal Reserve chair Janet Yellen on Friday said she expects the Fed to raise interest rates at some point this year, but pointed strongly to her concerns that U.S. labor markets remain weak and that more workers could be encouraged back into the job market with stronger growth. In her speech Yellen gave no direct hint about whether she anticipates more than one rate hike over the Fed's four remaining meetings of 2015. Fed officials seem to have set the stage for an initial increase as early as September. But recent events - the stock market collapse in China and the confusion in Greece in particular - have raised fresh concerns over how the world economy may hurt U.S. growth. Investors now believe an initial hike is not likely until next year." Disregard comments by Yellen, the woman behind the financial curtain of economic OZ, because she has no idea if, or when, the Fed will finally decide to abandon zero interest rates, as Craig Smith and Lowell Ponte explain in The Biggest Bank Heist in History.
LATEST: Greek Debt Crisis News -Reuters
"Greek Prime Minister Alexis Tsipras appealed to his party's lawmakers on Friday to back a tough reforms package after abruptly offering last-minute concessions to try to save the country from financial meltdown. After walking into a party meeting to applause, Tsipras rallied his Syriza lawmakers to throw their weight behind the new proposals ahead of a snap vote in parliament on the negotiations, urging them to help keep Greece in the euro. As Commerzbank's Markus Koch said on Thursday, “the 'No' in the referendum appears to be turning into a 'Yes' from Tsipras." reports Zero Hedge. So will Greece stay in the eurozone? Odds now point to yes, despite last Sunday's resounding "No!" vote. Either way, there is a lot Americans can learn from this debt debacle which is all covered in THE GREEK SHOWDOWN.
Maintaining The Illusion Of Stability Requires Ever-Greater Extremes -Zero Hedge
"On the surface, everything still looks remarkably stable in the core industrial economies. The stock markets in Japan, Germany and the U.S. are only a few percentage points off their highs, and we're constantly assured that inflation no longer exists and official unemployment is low. But this is not real stability; it is a brittle simulacrum (imitation) of stability, an illusion that has required the status quo to pursue extremes of policy and debt that are intrinsically incapable of yielding stability." We live in a political and economic world in which symbolism has been elevated above substance for an extended time period. This situation could change suddenly overnight. Your best financial protection is to own more assets that represent true substance - such as precious metals - because they are tangible, liquid and time-tested assets that always stand tall when the illusions finally fall.
Investors seek refuge in gold -Marketwatch
"Investment interest in gold got a boost as the U.S. dollar weakened, a combination of unrelated events prompted a selloff in the main U.S. stock indexes and uncertainty continued to surround Greece, Iran and China....worries about China have been the main culprit for weakness in industrial metals prices as the second-largest economy struggles to stem a downshift in its financial market." Read more in The Timeless Truth About Gold & Silver.
7.9.15 - STOCK MARKET LIQUIDITY AT RISK
Gold last traded at $1,159 an ounce. Silver at $15.36 an ounce.
NEWS SUMMARY: U.S. stocks rebounded Thursday from yesterday's steep selloff as traders shrugged off Greek debt worries and the recent plunge in Chinese stocks. Meanwhile, U.S. jobless claims rose to their highest level since February. The dollar rebounded while precious metal prices inched lower.
China Stocks Soar After Government Threatens Short Sellers With Arrest -ZeroHedge
"The Shanghai Composite Index had dropped as much as 3.8% to a 4-month low before the news that the cops were going to arrest anyone who was caught 'maliciously shorting stocks', when everything suddenly took off, and the SHCOMP closed a 'Dramamine required' 5.8% higher, the biggest daily increase since March 2009! Stocks around the globe followed, with US equity futures wiping out much of yesterday's losses and up 1% at last check."
NYSE Unprepared For Glitches -Fox Business
Former NYC mayor Rudy Giuliani criticized the NYSE for poorly handling the 3 1/2-hour trading freeze on Wednesday. Host Neil Cavuto asks author and Swiss America Chairman Craig R. Smith his opinion. "I agree the NYSE was negligent and cryptic at best, and maybe even deceptive at worst. The NYSE knew early on that this problem was a configuration error." Smith points out that by not getting out in front of this issue, the NYSE allowed fears of cyber attacks to further exacerbate yesterday's steep stock sell-off. Smith applauded Fox Business Network for helping calm market investors, rather than hyping the unknown, which is so often done in mass media today.
United, NYSE Outages Stoke Fears About Vulnerability Of Computer Systems -CBSNews "It’s been a high-tech nightmare in the financial, and airline industries today because of separate glitches. Trading was halted at the New York Stock Exchange for 3 1/2 hours after what has been described as an 'internal problem.' Trading later resumed, with sizeable losses. This was followed by temporary trouble accessing the Wall Street Journal’s website, and a flood of conspiracy theories on social media about a coordinated hack attack. But before all this happened, United Airlines grounded flights across the country for nearly two hours, because of what they call a 'router issue.'" Craig Smith believes cyber attacks today present the #1 risk to U.S. citizens, which is explained in detail in his latest book, DON'T BANK ON IT! The Unsafe World of 21st Century Banking. Check out this Global Real-time Cyber Attack Map. Frightening to say the least.
Greece Shuts Markets Through July 13 -Bloomberg
"Greece extended the closure of its stock exchange and electronic bond market again as officials attempt to pull together a plan to unlock European bailout funds. Equity trading has been closed since June 29. The government extended capital controls through Monday, and Prime Minister Alexis Tsipras has until midnight Thursday to present the leaders of other euro-zone countries with a plan that includes spending cuts, in exchange for a bailout. More than six European leaders have made clear this is Greece’s last chance. A failure to find a compromise may force the continent’s most-indebted country to leave the euro." THE GREEK SHOWDOWN, a new Research Paper available FREE by calling 800-289-2646, explains how the Greeks fell for a leftist welfare state (Trojan Horse) and why America is on the same path!
7.8.15 - STOCK TRADING HALTED, GOLD REBOUNDS
Gold last traded at $1,163 an ounce. Silver at $15.16 an ounce.
NEWS SUMMARY: U.S. stocks fell sharply Wednesday after China banned stock trading, followed by the NYSE exchange closure due to a "technical issue." Meanwhile, the Euro rebounded on Greek debt hopes, sending the U.S. dollar down and precious metal prices up on safe haven buying.
China Bans Stock Sales to Stop Sell-Off -Bloomberg
"China's securities regulator banned major shareholders, corporate executives and directors from selling stakes in listed companies for six months, its latest effort to stop the nation's $3.5 trillion stock-market rout. The Shanghai Composite Index slid 5.9 percent on Wednesday as official attempts to stop the selling, including measures to prop up small-cap stocks, were overshadowed by data showing an unprecedented liquidation of margin trades on Tuesday." Author and Swiss America Chairman Craig R. Smith commented, "Stocks are not as liquid as most investors believe. The same thing happened back in 2008, when they stopped short sellers on Wall Street. So much for free and open global stock markets."
Trading halted on NYSE floor -CNBC
"Trading in all symbols was temporarily halted on the New York Stock Exchange floor Wednesday due to an apparent technical issue. The NYSE said all open orders would be cancelled," according to Reuters. The NYSE was closed for over three hours, reopening at 3:10 pm ET.
China's really worrying financial crisis -Telegraph
"While all Western eyes remain firmly focused on Greece, a potentially much more significant financial crisis is developing on the other side of world. In some quarters, it's already being called China's 1929 - the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great Depression. Part of the problem with free markets is that by definition they cannot be controlled. Busts are as much part of their DNA as the wealth-enhancing properties of their booms. As China is about to discover, bad downturns come with the territory."
Greek debt showdown within 5 days -DailyMail
"Speaking at the European Parliament today Greek Prime Minister Alexis Tsipras said he was confident of meeting an end-of-the-week deadline set by eurozone leaders to reach a bailout deal or risk leaving the euro. 'Greece is on the edge of catastrophe. There will be riots and chaos', French central bank boss warns of dire consequences if the country does not make a deal this week." THE GREEK SHOWDOWN explains what to expect next.
Tech Guru George Gilder Makes Case for Gold Standard -Forbes
"A leading high-tech public intellectual attests to the ultra-modernity of the gold standard. George Gilder, also known as the living author most quoted by President Reagan, went on to high tech iconic thought leader status as the author of Microcosm, Telecosm, The Silicon Eye, and Knowledge and Power among other highly-regarded works." In The 21st Century Case for Gold: A New Information Theory of Money Gilder reveals anew the gold standard's deep scientific foundation, saying, " In economics money is part of the conduit or carrier. If money is to foster learning and knowledge. . . . money must be the measure, rather than what is measured." Bravo! We have been saying the same thing for three decades, read more in The Timeless Truth About Gold & Silver.
U.S. Mint sold out of silver coins on strong demand -Reuters
"The U.S. Mint said on Tuesday it temporarily sold out of its popular 2015 American Eagle silver bullion coins due to a 'significant' increase in demand, the latest sign plunging prices have spurred a resurgence of retail buying. In a statement sent to its biggest U.S. wholesalers, the Mint said its facility in West Point, New York, continues to produce coins and expects to resume sales in about two weeks." Now is the time to buy U.S. gold and silver coins - before prices resume climbing dramatically. Call your Swiss America representative to discuss The Wisdom of Buying Gold & Silver Right Now!.
7.7.15 - What to do in today's shaky financial world
Gold last traded at $1,152 an ounce. Silver at $14.69 an ounce.
NEWS SUMMARY: U.S. stocks fell Tuesday as the ongoing uncertainty surrounding the Greek debt crisis weighed on global financial markets. Bloomberg reports, "The Shanghai Index sank for the fourth time in five days, erasing more than $3.2 trillion of value in less than a month." Meanwhile, a sharply lower Euro boosted the U.S. dollar, sending commodity and precious metal prices lower.
IMF warns Fed on risks of hiking too soon -Marketwatch
"Hiking interest rates too soon could stall the U.S. economy, the International Monetary Fund said Tuesday, embellishing a prior call for the Federal Reserve to hold steady until early next year. A rate hike could push up the dollar, which is already slightly overvalued. Further appreciation of the greenback is 'an important risk to growth,' the IMF said." As covered in The Biggest Bank Heist in History, authors Craig Smith and Lowell Ponte do not expect the Fed will be in a position to raise interest rates until 2016 or later. This Research Reports explains how and why the FED's free money to big banks has left our economy and wages stagnant - while creating the biggest stock market bubble in history!
States face shaky financial futures; pensions at risk -USAToday
"Alaska, the Dakotas, Nebraska and Florida are on the most solid financial footing, according to rankings of the 50 states released Tuesday by the Mercatus Center at George Mason University. New York, Connecticut, Massachusetts, New Jersey and Illinois are at the bottom. In Illinois, ranked No. 50, the government used funds set aside for future pensions to pay more urgent bills. When the pensions came due, Illinois tried to cut them. A judge ruled this past May that Illinois' pension cuts were unconstitutional. But that left the state with no plan to deal with a growing list of debts."
Greeks think 'manana' can be every day -Telegraph
"President Obama intervenes in Greek talks after Athens delegation turn up to summit without new reform proposals. Obama urges for successful conclusion to Greek talks as EU leaders openly discuss ways to manage a 'Grexit' 'If the Greek government is always for 'manana', for us it can be 'manana' every day' said Dalia Grybauskaite, the president of Lithuania. She adds the Greek delegation only presented 'pictures not paper' at the eurogroup."
THE GREEK SHOWDOWN explains what to expect next...
This Greek contagion might start an avalanche of falling dominoes as other countries renege on their debts, and threaten to leave the Euro and return to their old currencies such as the Greek Drachma. A “Grexit” (Greek Exit) could influence PIIGS nations to leave the Eurozone, Great Britain’s upcoming referendum to exit (“Brexit”) the European Union (EU), and France’s potential exit (“Frexit”) from both the Euro and EU if Marine LePen’s nationalists come to power.
This could shatter the unity Europe has been trying to build around the Euro as a rival to the U.S. Dollar.
The Euro was an effort doomed to fail, Nobel laureate economist Milton Friedman warned before the new currency was launched, because Second and Third World nations such as Greece cannot be equal allies with First World economic powers. The stronger powers that control the currency will economically colonize and dominate the weaker.
Good Luck Finding a Place to Hide as Global Markets Crumble -Bloomberg
"Investors tend to respond to impending doom by selling risky stuff and hiding out in safer assets - namely, bonds in places such as Germany and the U.S. There’s a problem with that formula this time around: Traders aren’t so sure they can find anything that’s truly safe right now. After all, where will investors run? The government debt that used to be their safety looks more and more treacherous." For over three decades Swiss America has maintained that the simplest form of wealth insurance is converting shaky, debt-based paper assets into the safest assets on earth - physical gold and silver - which are at the best prices we have seen in five years! Call 800-289-2646.
7.6.15 - What Greek "No!" vote means
Gold last traded at $1,173 an ounce. Silver at $15.75 an ounce.
NEWS SUMMARY: Stock indexes in the U.S., Europe and Asia fell Monday on news of Greek voters' rejection of EU bailout terms. Meanwhile, commodities prices fell sharply amid uncertainty, a weaker Euro and flat U.S. dollar. Precious metals alone rose on fresh safe haven buying.
HAS GREECE VOTED “NO” ON ITS FUTURE? - PRBuzz
Craig Smith and Lowell Ponte have been warning Americans about the potential economic impact in their books, research reports and media interviews. "Soon we could see the same outcome in America. It is only a matter of time with all debt-ridden countries," explains Craig Smith in THE GREEK SHOWDOWN Research Report.
The ancient Greeks invented democracy. Have modern Greeks just manipulated democracy to commit suicide - or to kill the Euro currency, destroy a united Europe, and undermine America’s economy as well?
On Sunday, July 5, Greeks voted “No” by roughly 61 percent in a national referendum to, as the New York Times put it, “reject bailout terms in rebuff to European leaders.”
Greece’s 11 million people have run up debts of €320.4 Billion ($353 Billion) – more than a third of a trillion dollars – with a profligate, politicized welfare state that let workers in any of 1,200 “dangerous” occupations, including radio announcers and hairdressers, retire at age 50 with a pension equal to 80 percent of their peak lifetime annual pay.
Before capital controls on its banks limited account holder withdrawals to $67 per day, a national bank run was draining more than $2 Billion from its banks every three days. Even with such controls, without more bailout money from the European Central Bank (ECB), Greece’s banks will begin running out of money by Tuesday.
Without an ECB rescue, banks and the Syriza government might then begin “bail-ins,” seizing depositor accounts to cover bank shortfalls, as happened in March 2013 in the Greek-speaking Mediterranean island of Cyprus.
Greek banks prepare plan to raid deposits to avert collapse - FT.com
"Greek banks are preparing contingency plans for a possible 'bail-in' of depositors amid fears the country is heading for financial collapse, bankers and businesspeople with knowledge of the measures said on Friday. The plans, which call for a 'haircut' of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said. A Greek bail-in could resemble the rescue plan agreed by Cyprus in 2013, when customers’ funds were seized to shore up the banks, with a haircut imposed on uninsured deposits over €100,000."
Greece ‘48 Hours Away From Unrest’ - Bloomberg
"Greek Prime Minister Alexis Tsipras probably has 48 hours to resolve a standoff with creditors before civil unrest breaks out and ATMs run out of cash, hedge fund Balyasny Asset Management said. Fund managers are questioning how the International Monetary Fund and Europe’s leaders can seal a deal with Athens following the 'no' vote in a Greek referendum on Sunday."
Will the EU mess trigger a Gold & Silver Derivatives Default? - KingWorldNews
“The top 5 US banks have total a derivative exposure of $247 trillion. This is 3.5 times world GDP. Total derivatives for all banks in the world are just over $600 trillion. But these figures are less than half of the real exposure. A few years ago the BIS in Basel changed the basis of valuation of derivatives to 'Value to Maturity.' Within the derivative numbers of the top US banks we are now seeing some surprising changes in the precious metals. The notional amount of precious metals has gone from $22 billion in Q4 2014 to $75 billion in Q1 2015 and Citigroup accounts for most of that increase....the combination of the world economic problems and the massive derivative exposure makes the situation in the metals explosive.”
7.2.15 - Financial Independence Day
Gold last traded at $1,163 an ounce. Silver at $15.56 an ounce.
NEWS SUMMARY: U.S. stocks fell Thursday on soft jobs data and uncertainty about the outcome of the Greek debt vote on Sunday. Meanwhile, the euro traded higher against the U.S. dollar and precious metal prices ended the week slightly lower. The U.S. financial markets, as well as Swiss America, will be closed on Friday in observance of Independence Day.
The real unemployment rate is 10.5% - CNBC
"The U.S. Labor Department said Thursday that the unemployment rate was 5.3% in June - but does that rate tell the real story? A number of economists look past the 'main' unemployment rate to a different figure the Bureau of Labor Statistics calls 'U-6,' (currently at 10.5%) which it defines as 'total unemployed, plus all marginally attached workers plus total employed part time for economic reasons, as a percent of all civilian labor force plus all marginally attached workers.' In other words, the unemployed, the underemployed and the discouraged - a rate that still remains high."
U.S. labor force devastation continues - ZeroHedge
"In what was an 'unambiguously' unpleasant June jobs payrolls report, with both April and May jobs revised lower, the fact that the number of Americans not in the labor force soared once again, this time by a whopping 640,000 or the most since April 2014 to a record 93.6 million, with the result being a participation rate of 62.6 or where it was in September 1977....Year-over-year, factory orders dropped 6.3% (adjusted) but 8% non-adjusted, the most since the financial crisis....Since 2007 the US has lost 1.4 million manufacturers and gained 1.4 million waiters and bartenders."
Financial Independence Day - Jack Nadel/HuffPost
"Once again, we will joyfully celebrate the birth of an independent nation. However, for millions of American families, financial independence is just a distant dream. I worry because so many are struggling for economic survival. Creating a personal 'Financial Independence Day' for all people is a very ambitious goal and will require much innovation and commitment, but it is entirely possible....I urge you to start with Step One of my method: Identify a Business Idea That You Love (and genuinely inspires you)." For nations, as well as individuals, the keys to financial independence are simply; 1. to earn all you can, 2. to save all you can, 3. to get out of debt as much as you can, and 4. to give all you can. Creating your own personal financial independence day also requires converting some of your assets that are 'dependent' upon government confidence and debt (i.e. U.S. dollars) into assets that are 'independent' of debt and actually create confidence - physical gold and silver! Discover the The Timeless Truth About Gold & Silver!
The American Dream is suffering - BMGlobalNews
"The Atlantic/Aspen Institute's 'The American Dream' June 2015 key takeaways; The American Dream is perceived to be suffering. While majorities within almost all key demographic groups believe the American Dream is suffering, white Americans are more pessimistic than other ethnic groups. Those over 65 years old are most likely to believe they are living the dream - 66% vs only 41% of Millennials (under 30 years old). While most age and ethnic groups are split as to whether the dream is attainable for most or only a few Americans, strong majorities (over 60%) believe it remains achievable if you work hard."
Will Greeks defy creditors’ ‘blackmail’? - FinancialTimes
"The ECB’s governing council on Wednesday evening decided not to increase the amount of collateral required for the emergency loans currently sustaining Greek banks. Tougher haircuts on bank collateral could push some lenders over the edge, some eurozone officials fear. 'I’m afraid that Greek banks might not reopen with the euro as the currency if the referendum on Sunday ends with a no,' Peter Kazimir, the Slovak finance minister, wrote on Twitter." Read THE GREEK SHOWDOWN, a new Research Paper available FREE to understand who will be the next Greece.
7.1.15 - Gold: Safety From Uncertainty
Gold last traded at $1,169 an ounce. Silver at $15.57 an ounce.
NEWS SUMMARY: U.S. stocks rose Wednesday as investors digested mixed economic data amid renewed hopes of a Greece debt deal. Meanwhile, the U.S. dollar rose, pushing commodities and precious metal prices lower temporarily.
Greek crisis deepens - USA Today
"Greece's midnight deadline passed Tuesday for repaying $1.8 billion to the International Monetary Fund and other international creditors, deepening a financial crisis that threatens the Mediterranean nation's membership in the European Union. After the deadline passed (at 6 pm ET), Greece joined Zimbabwe, Sudan and Somalia in being in arrears to the IMF. Fitch Ratings has downgraded Greece's government debt further into junk territory. But should there be a so-called Grexit - or Greek exit from the European financial community - President Barack Obama said "it is important for us that we plan for any contingency, that we work with the ECB and other international institutions to ensure that some of the bumps that occur in the financial markets are smoothed out." Read THE GREEK SHOWDOWN, a new Research Paper available FREE by calling 800-289-2646.
Heartbreaking Scene Unfolds At Greek Banks - ZeroHedge
"1,000 Greek bank branches chanced a stampede in order to open their doors to the country's retirees on Wednesday. The scene was somewhat chaotic as pensioners formed long lines and the country’s elderly attempted to squeeze through the doors in order to access pension payments....A retired mariner who asked not to be named, told AFP he had no cash to buy crucial medicine for his sick wife. 'I worked for 50 years on the sea and now I am the beggar for 120 euros,' he said. 'I took out 120 euros - but I have no money for medication for my wife, who had an operation and is ill,' he added." Read THE SECRET WAR, a new Research Paper by Craig R. Smith & Lowell Ponte
With Greek Uncertainty, Investors Seek Safety in Gold - WSJ
"European demand for the age-old safe haven of gold coins has risen in recent weeks, as has the relatively new concept of investments in digital bitcoins, market participants say....Retail investors who buy coins and bullion have been influenced, Mr. Hanlon said, by the images of bank lines in Athens far more than by concerns about monetary policy in the U.S. over the past few years."
Many ask why the dollar price of gold has not risen more this year, given all the economic uncertainty? Truth is, gold prices started the year at about $1,200 an ounce and have clung near that level all year long - demonstrating the stability of gold in the face of an artificially stronger U.S. dollar and stock market. It is never too late to get started converting some cash into hard money for liquidity, safety and wealth preservation. In fact, a top performing asset over the past 15 years is now presenting gold buyers with an opportunity not seen since 2007. We are now buying them aggressively. We firmly suggest you at least grab a few of these, at minimum, while they are available. SEE details and performance chart
Greece Can Teach The World A Needed Lesson - Steve Forbes
"Former US Presidential candidate and publisher of Forbes Magazine, Steve Forbes, used the platform of his magazine to pen an open letter to the prime minister and finance minister of Greece, Alexis Tsipras and Yanis Varoufakis. Here’s how you can put away your beggar’s cup for good.... Adopt your own 10% flat tax....Privatization....Stop trashing former Greek residents or those of Greek descent who want to help out by investing in Greece....Change labor laws that kill job creation....Don’t even think of abandoning the euro....And, for goodness’ sake, don’t pull a Cyprus and confiscate bank deposits."
The Surprising Power of Cash - Wired
"There’s a scene in It’s a Wonderful Life you might remember. The citizens of Bedford Falls descend on the Savings and Loan, demanding cash in hand. A beleaguered George Bailey explains that the money’s not actually in the bank; it’s tied up in various investments. Eventually, he talks most of them down. In the 21st century, though, and in Greece this week in particular, there is no George Bailey. In fact, in Greece this week there are no open banks. There are just ATMs. As economies crumble, so does the viability of the digital infrastructure that so much of the world has come to take for granted as the way money moves. The harder an economy is hit, the more valuable cash becomes. But as Greek citizens coming away from ATMs empty-handed can attest, it turns out that money and currency aren’t the same thing."
Excerpt from DON'T BANK ON IT!, “It’s a Wonderful Life”, page 195-196 ...
One theme of the 1946 Frank Capra movie “It’s a Wonderful Life” was Bailey being shown what his community would have been like if he and his little bank had never existed.
We are now beginning to see that alternative future in our own world, and what it portends is not pretty.
As our banks become mere middlemen for government money, how long will it be until government simply eliminates these middlemen and itself becomes America’s bank?